Question
1) A company can improve its liquidity by increasing its accounts payable, while holding all else constant. Is this true or False? 2) The higher
1) A company can improve its liquidity by increasing its accounts payable, while holding all else constant. Is this true or False?
2) The higher the times interest earned ratio, the more comfortable are a firms creditors in the ability of the firm to meet its interest obligations. Is this True or False?
3) A firms management analyzes financial statements so that:
a)they can get feedback on their investing, financing, and working capital decisions by identifying trends in the various accounts that are reported in the financial statements.
b) similar to shareholders, they can focus on profitability, dividend, capital appreciation, and return on investment.
c) they can get more stock options.
d) a and b.
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