QUESTION 8

1. Asset turnover measures a company's solvency.

   True

   False

10 points

QUESTION 9

1. Return on assets can be disaggregated into return on sales and return on common stockholders' equity ratio.

   True

   False

10 points

QUESTION 10

1. One benefit of using ratio analysis to compare two firms in the same industry is that ratios are immune to size and current accounting rules.

   True

   False