1. What is the significance of undertaking ratio analysis to understand and anlayse financial statements? 2. What are the major sources of information that need to be kept in mind while using the...

1. What is the significance of undertaking ratio analysis to understand and anlayse financial statements?

2. What are the major sources of information that need to be kept in mind while using the ratio analysis technique?

3. Differentiate between leverage and liquidity ratios. If liquidity ratios are satisfactory compared with industry norms and leverage ratios that are adverse, what will be the implication in business? Explain.