Which of the statements below is FALSE?

Financial statements are a collection of historical and current activities of the company.

The collection of value over time found in financial statements requires us to pay attention to how we construct financial ratios so as to glean information for analysis.

All financial statements are constructed with the same accounting principles, so you can always compare different firms based solely on these statements.

We want to analyze financial statements so as to compare different companies and their performance relative to our company.

2. Which of the statements below is FALSE?

The purpose of studying financial statements is to understand those portions of the statements that have relevance for financial decision making.

We need to understand how to interpret and use the information presented in financial statements to form a picture of the financial profile of the firm.

Accounting, it has been said, looks back to where a company has been - somewhat like looking through a rear view mirror.

Accounting and finance view the numbers in the same way.