TRUE OR FALSE
1.Financial statement analysis uses computational and analytical
techniques to evaluate the company's risks, performance, financial
health, and future prospects with the objective of making economic
decisions.
2. Return on asset is an operational efficiency ratio.
3. Profitability ratios measure the ability of the company's assets to
generate sales.
4. Gross profit margin provides an indication of the company's average
pricing policy.
5. Given equal gross profit margin, the company with the lower operating
ncome margin has higher operating expenses as a percentage of sales
and has leaner operations.
6. Using another company as benchmark, the company with higher net
rofit margin is more profitable.​