17. Buying stock on margin lowers the overall risk for the investor. A) True B) False 18. The P/E ratio presents the relationship between a firm's profits divided by their earnings per share. A) True B) False 19. Accountants truly represent the financial managers of a business. A) True B) False 20. A budget's primary purpose is to provide managers with a financial summary of the past operations of a firm. A) True B) False 21. As a financal manager of a small firm, Jerry needs to determine how much his company will have to borrow in the coming months, and when the borrowed funds will be needed. The preparation of cash budget will help. A) True B) False 22. Bfficient cash management requires firms to pay their bills as quickly as possible, and delay the collection of accounts receivable. A) True B) False 23. An effective strategy to manage cash flows requires retail businesses to eliminate their inventory. A) True B) False 24. If a buyer is offered the terms of sale of "3/10, net 30" this means that the buyer can receive a 10 percent discount by making full payment within 3 days of the billing date. A) True B) False