Practice Questions for Finance 3000, Exam II, Fall 2009
1. Ratios are used to compare different firms in the same industry.
2. Financial ratios are used to weigh and evaluate the operational performance of the firm.
3. Liquidity ratios
BRIEF EXERCISE 4-1 The steps in using a work sheet are performed in the following sequence: (1) prepare a trial balance on the work sheet, (2) enter adjustment data, (3) enter adjusted balances, (4) extend adjusted balances to appropriate statement column