With respect to financial statement analysis, answer true or false for each of the following statements.

a. Financial ratios illustrate financial information relationships for comparison purposes and are derived generally from the income statement, balance sheet, and cash flow statement.

b. Financial ratios can only provide managers with trends because outside users such as investors and analysts do not have the training to assess progress against predetermined goals, competitors, or the overall industry.

c. Financial statement analysis is required by generally accepted accounting principles and standards of ethical conduct.

d. Financial statement analysis can assist in identifying areas where improvements can be made.

e. Ratios are easy to calculate and use, and they provide some insight into the operations of the business. But other information can also be important, such as industry and economic trends, employee skills, customer preferences, and operational metrics.