Homework answers / question archive / Louisiana State University, Shreveport ACCT 701 Chapter 17 Self- Test Indicate whether each of the following statements is true or false

Louisiana State University, Shreveport ACCT 701 Chapter 17 Self- Test Indicate whether each of the following statements is true or false

Accounting

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2. Vertical analysis helps detect changes in a company's performance over several periods and highlights trends.
3. Common-size statements provide information about changes in dollar amounts relative to

the previous periods.

4. Liquidity ratios show a company's capacity to pay maturing current liabilities.
5. A company that is quite profitable may find it difficult to pay its accounts payable.
6. Financial statement analysts must be sure that comparable data are used among companies

to make the comparisons valid.