The two methods of ratio analysis are called some of the


1. The two methods of ratio analysis are called:

trend analysis and competitors (comparative) analysis.

cross-sectional analysis and financial planning analysis

long-range analysis and short-range analysis.

trend analysis and long-range analysis.

none of the above.

2. Some of the limitations/cautions of ratios analysis are the following except

Large firms have multiple lines of business ("vertically or horizontally integrated" firms).

Sales and expenses may be seasonal

Firms use different accounting procedures

Only b and c

all of them are limitations/problems.

3. Which of the following is an important trend(s) for financial management today?

Globalization of Business

Profound changes in business practices

Increased use of information/computer technology

a and c only

All the above.

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Financial Management: The two methods of ratio analysis are called some of the
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