Indicate Whether Each of the Following Statements About Financial Statement

question 87

Short Answer

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

Identify the importance of natural resources and human capital in the economic development of a country.

Understand the role of international organizations and assistance in the economic development of countries.

Recognize the barriers to and benefits of trade liberalization and free trade policies in developing countries.

Acknowledge the role of education in facilitating technological changes and the acceptance of new ideas.

---

Definitions:

Liquidating Dividend

A type of dividend paid by a corporation to its shareholders during its liquidation, distributing the remaining assets among the shareholders.

Sale

The exchange of goods or services for money, constituting a fundamental economic activity.