Financial statements in which each item is stated as a percentage of some specific base item in the same statement are known as Select one: a. Comparative statements b. Common size statements c. General purpose statements d. Base rate statements 6. The profit margin ratio measures: Select one: a. The rate of return on total assets b. The difference between the purchase price and the selling price of inventory C. The proportion of each sales dollar that represents profit d. Return to shareholders Which of the following is not true? 6. Select one: a. A low current ratio may indicate difficulty in meeting short-term commitments b. A current ratio of $1.50 of current assets for each s1 of current liabilities should always be maintained C.A high current ratio may indicate excessive investment in working capital d. The current ratio can be manipulated at balance date, e.g. by using cash to pay off short-term debt When calculating the quick (acid test) ratio which of these is normally deducted from current assets? 7. Select one: a. Inventory and accounts receivable b. Cash and prepayments c. Accounts receivable and inventory d. Inventory and prepaid expenses 00