Please answer number 1,2 and 3 only no need to explain. Thanks! !1. Which of the followingstatements concerning financialratios is incorrect?A. Accounting principles and methodsused by a company will not affectfinancial ratios.B. The informational value of a ratio inisolation is limited.C. A ratio is one number expressed asa percentage or fraction of anothernumber.D. Calculation of financial ratios is notsufficient for a complete financialanalysis of a company.2. Which of the followingstatements is correct?A. All other things being equal, themore efficiently a company utilizes itsassets, the greater will be its return oninvestment.B. All other things being equal, ifreturn on equity increases, the returnon assets must have also increased.C. All other things being equal, if thenumber of days inventory heldincreases, the return on assets willincrease B. All other things being equal, ifreturn on equity increases, the returnon assets must have also increased.C. All other things being equal, if thenumber of days inventory heldincreases, the return on assets willincrease.D. All other things being equal, if thegross margin decreases, the inventoryturnover must have increased.3. Which of the following actionscan a firm take to increase itscurrent ratio?A. Issue short-term debt and use theproceeds to buy back long-term debtwith a maturity of more than one year.B. Reduce the company's days salesoutstanding to the industry averageand use the resulting cash savings topurchase plant and equipment.C. Use cash to purchase additionalinventory.D. Statements A and B are correct.E. None of the statements above iscorrect.

Financial ratios are one of the most important and powerful indicators of the measurable metrics of…

1. Which of the following statements concerning financial ratios is incorrect? A. Accounting principles and methods used by a company will not affect financial ratios. B. The informational value of a ratio in isolation is limited. C. A ratio is one number expressed as O a percentage or fraction of another number. D. Calculation of financial ratios is not O sufficient for a complete financial analysis of a company.