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Indicate Whether Each of the Following Statements Is True or False

question 146

Short Answer

Indicate whether each of the following statements is true or false.
1. Liquidity is the ability of a business to repay liabilities in the long run
2. The current ratio is a useful measure of liquidity
3. 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
4. Operating cycles for most businesses are less than one year
5. The current ratio is computed by dividing current assets by net income for the current period

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Definitions:

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Slides

A single page or image, often part of a presentation, used to convey information visually, typically displayed with a projector or on a computer screen.

Recency Effect

This refers to the tendency to remember the most recently presented information best.

Implicit Memory

The system for long-term storage of unconscious memories that cannot be verbally described.

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