Define financial ratio. What two conditions must exist for a ratio to be useful in financial statements analysis?
Answer to relevant QuestionsIdentify five common categories of financial ratios. How are ratios in each category normally expressed in terms of decimal, percentage, or dollar?Why is the cash flow statement considered to be a powerful analysis tool?What is the purpose of personal financial statements, and how do they differ from those presented by an audited organization?1. What is the value of the statement of cash flows?a. Easy to structureb. Difficult to manipulatec. Regimented in its layoutd. Interpreted by CPAs2. Preparing a statement of cash flows is an excellent test of a forensic ...Go to www.sec.gov and obtain WorldCom’s Form 10- K for year 2002. Using the restatement information presented on pages 42– 48 of the form, identify any inappropriate adjusting entries (or failure to make appropriate ...
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