Question 4: Which of the following is NOT correct?

A. Ratio analysis helps to assess the performance in the context of goals and strategy.

B. Effective ratio analysis must attempt to relate underlying business factors to the financial numbers.

C. Ratios can be used to compare the performance of firms across industries.

D. All of the above are incorrect.

Question 5: Which of the following is likely to serve as a balancing factor in preparing a forecast balance sheet?

Select one:

A. Shareholders' equity.

B. Total liabilities.

C. Cash

D. Total assets.

Correct Answer with a full explanation will thump up