Answer in True and false only:

1. The statement, "you can't know where you're going 'till you know where you came from," means that the past, with consideration of current information, is usually one of the best indicators of the firm's future performance.

2. A major responsibility of the financial analyst is to gather information about a firm in order to predict its performance.

3. Both accounting and finance are concerned primarily with the creation of financial statements and their use as tools for evaluating the firm's future prospects.

4. Because the statement of cash flows derives its information from the balance sheets of the firm, it can be referred to more formally as the statement of changes in net working capital.

5. The ultimate test of a firm's efficient use of its stockholders money is its return on equity.

6. The following changes in the equity accounts would all be shown under the category of financing activities on the statement of cash flows: dividends paid, net income for the year, sale of common stock.

7. A decrease in accounts receivables is categorized as a use of funds.

8. A decrease in accounts payable is categorized as a use of funds.

9. Liquidity ratios are used to analyze the liquidity of the fixed assets of the firm.

10. Profitable firms can go out of business.