Question
Circle the correct answer: (T=True, F=False) (a) Liquidity ratios measure a company's ability to generate future revenues and meet long-term obligations T F (b) Under
Circle the correct answer: (T=True, F=False) (a) Liquidity ratios measure a company's ability to generate future revenues and meet long-term obligations T F (b) Under the "zero based" method of budgeting, managers are required to justify changes to the budget from the previous year T F (c) Competition trends and market trends should be closely considered when developing a budget T F (d) Solvency ratios measure a company's ability to meet short-term obligations and to generate revenues efficiently T F (e) Financial statement and related data assist in making business decisions T F (f) Capital investment analysis using the "payback period method"is the most accurate method of analyzing investment opportunities T F (g) Reviewing market trends and external conditions are not useful techniques to use in budget development T F (h) Budgetary slack may occur when revenues are deliberately under-estimated T F (i) Trend analysis is a method of vertical analysis T F (j) Intra-company comparisons involve comparison against one or more direct competitors performance T F
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