11. Generally Accepted Accounting Principles (GAAP) are used to prepare the financial statements for a corporation. 12. Cross-sectional ratio analysis is used to evaluate a single firm's performance over a period of several years. 13. Generally, the lower the "Current Ratio," the more liquid the firm is considered to be and, also, the more predictable its cash flows are. 14. The Average Collection Period (ACP) is most meaningful in relation to the credit terms offered by the firm. I.e., it is desirable for the firm's ACP to not exceed its credit period offered to customers. 15. Generally, the higher a firm's "Total Asset Turnover" ratio is, the less efficiently the firm's assets have been used. 16. A portfolio is a collection or group of assets. 17. Most managers are risk-averse," as for a given increase in risk, they require a decrease in the investment's rate of return. 18. An investment with a higher rate of return generally has a higher standard deviation, also. A. TRUE / FALSE QUESTIONS Enter "True" or "False on the blank preceding each