One Problem with Ratio Analysis Is That Relationships Can Be

question 96

True/False

One problem with ratio analysis is that relationships can be manipulated.For example, we know that if our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger.

---

Definitions:

Unnecessary Risks

Taking actions that have potential for negative outcomes without sufficient reason or benefit.

Suicide

The intentional act of causing one's self to die.

Mood Disorders

A category of mental health disorders characterized by persistent disturbances in mood, such as depression or bipolar disorder.

Learned Helplessness

A passive resignation to aversive conditions that is learned through repeated exposure to inescapable or unavoidable aversive events.