One Problem with Ratio Analysis Is That Relationships Can Be

question 53

True/False

One problem with ratio analysis is that relationships can 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:

Power Transistor

A semiconductor device used to amplify or switch electronic signals and electrical power.

ECU

Electronic Control Unit, a type of computer in vehicles that controls one or more of the electrical systems or subsystems.

Two-switch AND Gate

A basic digital logic gate that outputs a high signal or true only if both input signals are high or true.

Output

The result or product of a system's process, typically referring to power, data, or material produced by a system or device.