The purpose of financial statement analysis is not only to understand the historical results of financial statements but also to use that information to forecast the future. * TRUE FALSE

Inventories encompass all of the following except * Merchandise purchased by a retailer Land and other property not held for sale Finished goods produced Materials and supplies awaiting use in the production process

In financial analysis, ratios are used to help us learn about the firm's: *

profitability

growth and potential for growth

resource needs

All of the above answers are correct.

All of these factors are used in credit policy administration except*

credit standards

terms of trade

peso amount of receivables

collection policy

Strategic planning is the process of deciding on an organization' * minor programs and the approximate resources to be devoted to them major programs and the approximate resources to be devoted to them minor programs prior to consideration of resources that might be needed major programs prior to consideration of resources that might be needed