ncome statement are two key statements for a company statement and so is Income Statement . D. Balance Sheet and I These can be described as l 1. Balance Sheet is a period of time 2. They are both point of time statements 3. Balance Sheet is a poi nt of time, but Income Statement is a period of time of Time, these are all terms dependent on the prevailing ind of follows t statement 4. Point of Time, Period might change, if one Accounting Conventions. For example, the definitions moves from NY to, say Hong Kong, which k Convention. Anyway, this is what I think our professor told us he British Accounting n class. E. Market to BOOK (M/B) and Price to Earnings (P/E) ratios a re what is called Market Value Ratios, because they are driven by the Stock Market. Profitability Ratios (ROE, ROA, BEP, NM etc.) on the other hand, are book value based, and therefore accounting driven. 1. False 2. True Depends on the Accounting convention of the country of operation. I think this is what our professor told us. Not sure! 3. F. If a company operates wi th zero inventory as a standard mode of operation, there nt Ratio as well as Quick Ratio, 1. Agree 2. Disagree