Indicate Whether Each of the Following Statements Is True or False

question 29

Short Answer

Indicate whether each of the following statements is true or false.
________ a)Operating cycles for most businesses are less than one year.
________ b)If a business does not plan to use any of its current assets to repay a debt,then that debt is listed as long term even if it is due within a year.
________ c)The current ratio is computed by dividing current assets by net income.
________ d)The current ratio is a useful measure of a company's liquidity.
________ e)Liquidity is the ability of a business to repay liabilities in the long run.

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Definitions:

Horizontal Rule

A graphical element in the form of a horizontal line used to separate content in digital or printed media.

Sense of Scale

The perception or appreciation of the size or extent of something, often in relation to something else.

Copyright Law

A legal framework that gives the creator of original work exclusive rights to its use and distribution.

Republish

The act of publishing again or releasing previously published content to a new audience or in a new format.