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:

Disturb

To interrupt or negatively affect the normal state or tranquility of something.

Constructive Eviction

A form of eviction that occurs when a landlord fails to perform adequately any of the duties required by the lease, thereby making the tenant’s further use and enjoyment of the property exceedingly difficult or impossible.

Unfit For Occupancy

A condition where a dwelling or property is deemed unsafe or unsuitable for living due to health, safety, or building code violations.

Adverse Possession

A legal principle under which a person who occupies land belonging to another for an extended period may be entitled to claim legal title to that land.