Acquiring land by taking out a long-term mortgage will not affect the current ratio.

True

False

Purchasing marketable securities with cash will have no effect on a company's acid-test ratio.

True

False

When fixed costs are included in the cost of goods sold, the gross margin percentage should increase and decrease with sales volume.

True

False

The formula for the average sale period is: Average sale period = Accounts receivable turnover Inventory turnover.

True

False

The formula for total asset turnover is: Total asset turnover = Total assets Total stockholders equity.

True

False

As the accounts receivable turnover ratio decreases, the average collection period increases.

True

False