Indicate Whether Each of the Following Statements About Financial Statement

question 13

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
The ratio of plant assets to long-term liabilities is a measure of a company's ability to obtain additional long-term financing.______
Generally,a company's current assets should be purchased using long-term financing such as bonds payable.______
Ratios that measure a company's profitability provide some measure of the effectiveness of the company's management.______
Net margin indicates the amount remaining from each sales dollar after cost of goods sold has been subtracted out.______
Net margin is also sometimes called the return on assets ratio.______

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Definitions:

Law of Heredity

Describes the principles guiding how traits are passed from parents to offspring, traditionally referenced in the context of genetics and biological inheritance.

Uniformitarianism

The geological principle suggesting that the same processes and natural laws that operate in the universe now have always operated in the past.

Natural Selection

A fundamental mechanism of evolution, where organisms better adapted to their environment tend to survive and produce more offspring.

Catastrophism

The theory that the Earth has been shaped by sudden, short-lived, violent events, possibly worldwide in scope, contrasting with uniformitarianism which emphasizes gradual changes.