"The Amount of Information in the Accounting Reports Is So

Multiple Choice

"The amount of information in the accounting reports is so overwhelming that I cannot understand it," said Ripley to his division manager, Sotol. "Yes," said Sotol, "The sheer volume of the numbers in the reports is daunting. That's why we have decided that an effective approach for checking our firm's overall performance is to use ________, which indicate strengths and weaknesses."

A) profit and loss statements
B) key financial ratios
C) assets
D) liabilities
E) balance sheets