Exercise 1 : True or False 1. In dividend yield ratio, investors are more interestes in cash returns than in accrual income. 2. Liquidity is the ability of the company to meet its current liabilities out of current assets. 3. Percentage composition statements can be used for comparing that are different in size. 4. Solvency means the ability to pay maturing obligations on time. 5. Profitability means the ability of the company to withstand adverties or to survive during financial reverses. 6. Trend analysis involves development of mathematical relationships between accounts in the financial statements. 7. Working capital is the excess of current assets over current liabilities. 8. Large debts mean that the borrower has yo pay significant periodic interest and principal. 9. Historical analysis concentrates on trends in the accounts in peso value and percentage terms. 10. The number of days sales in receivables is a measure of asset utilization