10 ) Ratio analysis can be useful for

A) historical trend analysis within a firm.

B) comparison of ratios within a single industry.

C) measuring the effects of debt or equity financing.

D) All of the options are true.

11 ) In examining the liquidity ratios, the primary emphasis is the firm's

A) ability to effectively employ its resources.

B) overall debt position.

C) ability to pay short-term obligations on time.

D) ability to earn an adequate return or profits.

12 ) Which two ratios are used in the DuPont system to create return on assets?

A) Return on assets and asset turnover

B) Profit margin and asset turnover

C) Return on total capital and profit margin

D) Inventory turnover and return on fixed assets