Q20. Suppose you are comparing two firms in the coal industry. Which type of numbers would be most meaningful for statement analysis? Relative numbers would be most meaningful for both firms, especially for interfirm b) Relative numbers are not meaningful e) Absolute numbers are not relevant d) It is not meaningful to compare two firms e) None of the above Q21. Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? Management is not interested in the view of investors Management is interested in liquidity c) Management is interested in profitability d) Management is interested in the financial structure of the entity e) Management is interested in activity ratios Q22. Which of the following ratios can be used as a guide to a firm's ability to carry debt from an income perspective? a) Debt ratio b) Debt to tangible net worth c) Debt/equity Times interest earned e Current ratio Q23. There is disagreement on all but which of the following items as to whether it should considered a liability in the debt ratio? a) Short-term liabilities b) Reserve account c) Deferred taxes d) Minority shareholders' interest Preferred stock Q24. In computing the debt ratio, which of the following is subtracted in the denomina a) Copyrights b) Trademarks c) Patents d) Marketable securities e) None of the above 6 6