1. Determine whether each of 5 points the following statements is true or false. * True False Although depreciation is always a period cost in a merchandising firm, it can be a product cost in manufacturing firm. O Managerial accounting places less emphasis on nonmonetary data than financial accounting O If a firm sold some inventory on credit as opposed to cash, there is no reason to think that either its current or quick ratio would change. O The inventory turnover and current ratio are related. The combination of a high current ratio and a low inventory turnover ratio, relative to industry norms, suggests that the firm has an above-average inventory level and/or that part of the inventory is obsolete or damaged. O O ! Suppose a firm wants to maintain a specific times- interest-earned - (TIE) ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio