True or false?

a. A company's return on equity will always exceed its return on assets.

b. A company's liabilities-to-assets ratio always equals 1 plus its liabilities-to-equity ratio.

c. A company's collection period should always be less than its payables period.

d. A company's current ratio must always be larger than its acid- test ratio.

e. Economic earnings are more volatile than accounting earnings.

f. Unrealized paper gains are less valuable than realized cash earnings.

AppendixLO1