One Problem with Ratio Analysis Is That Relationships Can Sometimes

question 82

True/False

One problem with ratio analysis is that relationships can sometimes be manipulated.For example,if our current ratio is greater than 1.5,then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to INCREASE.

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Definitions:

Words

In computing and digital systems, a fixed-sized piece of data handled as a unit by the instruction set or the hardware of the processor.

Move Instruction

A programmable logic controller instruction that moves data from one location to another. Although a move instruction typically places the data in a new location, the original data still reside in their original location.

Source

The origin or starting point of something, such as a signal in an electronic system or data in computing.

Address

A code that indicates the location of data to be used by a program, or the location of additional program instructions.