1. The balance sheet is also known as a profit and loss statement.

True

False

2. There can be a significant difference between positive cash flow and profit.

True

False

3. The greater the current ratio is above one, the greater its ability to meet short-term obligations.

True

False

4. The times interest earned ratio is a highly effective measure to determine a business’s ability to meet its debt obligations.

True

False

5. The desired trend for thedays-in-receivables ratio is a reduction, indicating that a firm is being paid more quickly by its customers.

True

False