QUESTION 4

In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.

True False

QUESTION 5

The return on invested capital measures the total return that a company has provided for its investors. True False 2 points QUESTION 6 Ratio analysis involves analyzing financial statements to help appraise a firm's financial position and strength.

True False

QUESTION 6

Ratio analysis involves analyzing financial statements to help appraise a firm's financial position and strength.

True

False

QUESTION 9

The basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects.

True

False