
1.
Concept Introduction:
Financial ratios: Ratio helps the investor and the company to analyze the growth of the business. It helps to take decisions to the management of the business and helps the investor in taking the decision of investment. The financial ratio also helps to compare the company with previous data and from other companies.
To Explain:
The reason CEO reports only 4 ratios.
2.
Concept Introduction:
Financial ratios: Ratio helps the investor and the company to analyze the growth of the business. It helps to take decisions to the management of the business and helps the investor in taking the decision of investment. The financial ratio also helps to compare the company with previous data and from other companies.
To Explain:
Consequences of reporting these 4 ratios.

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Chapter 13 Solutions
Financial Accounting: Information for Decisions
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