Debt securities: Reflect a creditor relation and include notes and bonds.

TrueFalse

Equity securities: Reflect an owner relation and include stock.

TrueFalse

Short-term investments are noncurrent assets.

TrueFalse

Short-term investments: Investments that (1) management intends to convert to cash within one year and (2) are readily convertible to cash. Short-term investments are non-current assets.

TrueFalse

A company's return on total assets (or return on assets) is used to assess financial performance.

TrueFalse

The return on total assts can be separated into two components, profit margin and total asset turnover.

TrueFalse

Profit margin reflects the percent of net income in each dollar of net sales.

TrueFalse