5. Which statement is TRUE? (1pt) a. If expense control is a problem, one should look to the TAT ratio. b. A company that borrows a lot, relative to equity financing, would have a low EM ratio. One should not report both the inventory turnover ratio and the days sales inventory ratio - they measure the same thing. c. d. Liquidity ratios assess both the quantity and quality of current assets/liabilities. e. The goal of a financial manager should be to reduce all "stock" debt ratios - TD/TA, TD/TE, and TA/TE. After all, debt is bad. 1| Page

5. Which statement is TRUE? (1pt) a. If expense control is a problem, one should look to the TAT ratio. b. A company that borrows a lot, relative to equity financing, would have a low EM ratio. c. One should not report both the inventory turnover ratio and the days sales inventory ratio - they measure the same thing. d. Liquidity ratios assess both the quantity and quality of current assets/liabilities. e. The goal of a financial manager should be to reduce all "stock" debt ratios - TD/TA, TD/TE, and TA/TE. After all, debt is bad