B1. Financial statement analysis A. B. C. D. E. Provides useful information to shareholders but not to debt holders. Is limited to internal use by a firm's managers. Is primarily used to identify account values that meet the normal standards. Provides useful information that can serve as a basis for forecasting future performance. Is enhanced by comparing results to those of a firm's peers but not by comparing results to prior periods B2. Which one of these statements is true concerning the price-earnings (PE) ratio? A. B. C. D. E. A high PE ratio may indicate that a firm is expected to grow significantly. PE ratios are unaffected by the accounting methods employed by a firm. The PE ratio is a constant value for each firm. A PE ratio of 16 indicates that investors are willing to pay 1 for every 16 of current earnings. The PE ratio is classified as a profitability ratio