24. A key reason for the difference between a company's profitability and cash is the gap between a. Accounts Payable and Current Liabilities b. Accounts Receivable and Accounts Payable C. Current Assets and Current Liabilities 25. Ratio analysis is used to evaluate a firm's: a. b. c. Risk Financial performance Contribution to shareholder wealth 26. Financial ratios give us two ways of making meaningful comparisons of a firms' financial data We can examine ratios: a. b. c. Across time and between other companies Across time and into the future Into the future and between other companies 27. Which of the following is not an important question about a firm's operations that can be answered by examining financial ratios a. b. c. How liquid is the firm? What are the free cash flows of the firm? Are the firm's managers generating adequate operating profits? 28. The time value of money refers to the fact that a. b. c. Dollars paid or received at two different points in time are different Old currency needs to be taken out of circulation A dollar today is worth less than a dollar in the future 29. The reason a dollar in the future is worth less than a dollar today is because a. b. c. Inflation erodes the value of a dollar There is a risk that the future dollar will be lost You can earn interest on money 30. The process of determining the future value of money is: a. Discounting Compounding C. Amortization