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61. Solvency is the company's ability to pay its current debts when they become due. True False 62. Inventory is more liquid than accounts receivable

61. Solvency is the company's ability to pay its current debts when they become due.

True

False

62. Inventory is more liquid than accounts receivable because receivables must be collected and some customers may not be willing to pay, while inventory need only be sold in a retail store.

True

False

63. The analysis of common-size statements is called horizontal analysis.

True

False

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