Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) Ratio analysis may involve studying relationships between an item reported on the balance sheet and another reported on the income statement.
_____ b) Comparing sales in 2012 with sales for 2011 is a form of vertical analysis.
_____ c) Comparing net income in 2012 with sales for 2012 is a form of horizontal analysis.
_____ d) Liquidity ratios measure a company's ability to generate profits in the short term.
_____ e) Working capital is calculated by using the following formula: quick assets - current liabilities.

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The Answer of Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) Ratio analysis may involve studying relationships between an item reported on the balance sheet and another reported on the income statement.
_____ b) Comparing sales in 2012 with sales for 2011 is a form of vertical analysis.
_____ c) Comparing net income in 2012 with sales for 2012 is a form of horizontal analysis.
_____ d) Liquidity ratios measure a company's ability to generate profits in the short term.
_____ e) Working capital is calculated by using the following formula: quick assets - current liabilities.

Indicate Whether Each of the Following Statements About Financial Statement