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– Nelson Mandela

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Q 1. The current ratio 2. Which one of the following is a reason a company’s reported book value and its true value may differ? 3. Assessing a company’s inventory turnover helps assess the 4. The use of financial statements for predicting future earnings and cash flows is limited due to 5. Common-size financial statements are based on

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1. is a measure of a company's leverage. 2. Statements do not reflect the company's prospects within its business environment. 3. speed at which inventories move through operations. 4. management bias, lack of forward-looking information, and certain inherent limitations. 5. percentages of other numbers on the same statements.