20 Which financial method displays the relationship between two or more elements of a firm's financial statements? Calculating financial ratios Analyzing financial statements Measuring the cost of capital Identifying financial data 21 How are financial statements used by government entities? To determine the accuracy of a company's taxes To see how company activities affect national trade balance To calculate the 30-year treasury-bill rate To determine the overall employment rate NEXT > BOOKMARK CLEAR 22 What describes accrual-based accounting? All financial transactions include a debit or a credit to the company's cash account Economic events are recognized when they occur, not when cash changes hands. The retained earnings account is converted into cash when earnings are realized Accruals only apply to asset depreciation accounts, not to cash flow accounts. NEXT > BOOKMARK CLEAR