1. Which group of financial ratios provides the financial manager with information pertaining to items that are not necessarily contained in the financial statements?
a. Turnover ratios
b. Profitability ratios
c. financial leverage ratios
d. market value ratios
2. Which of the following is NOT a problem associated with financial ratio analysis?
a. Firms in the same industry may use different accounting procedures (e.g. LIFO versus FIFO)
b. Large firms often operate in more than one industry
c. Provide market participants with information regarding the financial health of the firm
d. There is no theory to help guide the analysis of financial ratios.