Which of the following statements best describes the relationship between taxable income and financial statement income?

	A.	Taxable Income and Pre-Tax Income on the financial statements are equal to one another.
	B.	Taxable Income and Pre-Tax Income on the financial statements are not equal to one another and the differences are often reflected in Income Taxes Payable and Receivable.
	C.	Taxable Income and Pre-Tax Income on the financial statements are not equal to one another and the temporary differences are often reflected in deferred tax asset or liability accounts.
	D.	In the United States, the Internal Revenue Service determines Taxable Income using Financial Statement Income found in a company's financial statements.

Which of the following statements best describes the purpose of ratio analysis?

	A.	Ratio Analysis is a form of Common Size Analysis.
	B.	Ratio Analysis allows the financial analyst to compare certain income statement, balance sheet and statement of cash flow items to one another in order to better ascertain the financial health of a company.
	C.	Ratio analysis is primarily used by creditors in estimating the credit worthiness of a potential borrower.
	D.	Ratio Analysis is primarily used in providing inputs to DuPont Analysis.