make comparisons Differences in firm size make it difficult to compare financial statements. easier. Classification Statements. Market Price Statements. Common-Size statements. Tax Reconciliation Statements. Statements of Standardization. Question 14 2 pts Internal users evaluate financial statements as part of performance evaluation and as part of planning for the future. External users who evaluate financial statements include creditors, potential investors, suppliers, and competitors. When choosing a benchmark time trend analysis can be used. Peer group analysis can also be used which of the following is true about identifying potential peers ? The Standard Industrial Classification (SIC) code and the North American Industry Classification System (NAICS) are established by the U.S. government to classify a firm by its type of business operations. There is a different NAICS code for each of the following: Hotels, Casino Hotels, and Restaurants. Ultimately, the choice of which companies to use as a basis for comparison is subjective. All of the above. Only a. and c. above. Question 15 2 pts What is the return on assets (ROA)? Return on equity = 7%, Earnings before taxes = $500,000; Total asset turnover = 0.50; Profit margin = 5.0%; Tax rate 30%. 1.5%. 2.5%. 4.0%. 6.0% 7.0%. Question 16 2 pts The breaks down return on equity into three component parts: operating efficiency of the firm, its asset use efficiency, and financial leverage. Asset turnover ratio. DuPont identity. Equity multiplier Return on assets. Statement of cash flows