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:

HDL

High-density lipoprotein, often referred to as "good" cholesterol, which helps remove other forms of cholesterol from the bloodstream.

Bad Cholesterol

Low-density lipoprotein (LDL) cholesterol, which can build up in the walls of arteries and increase the risk of heart disease.

Acamprosate

A medication used to help maintain sobriety in individuals recovering from alcohol dependence by restoring the natural balance of neurotransmitters in the brain.

Relapse

The return of a disease or symptoms after a period of improvement.