For each of the following questions, indicate whether the statement provided is true or false. If you indicate that the statement is false, provide an explanation as to why. It a company has a current ratio of than one (e. g. current assets > current liabilities). we know that it has generated positive net income. Accounts receivable are considered a more Iiquid asset than a building. When we say that financial statements are prepared on an 'accrual basis'. we mean that transactions are recognized and recorded when they occur, not when cash is exchanged. In order to determine if a company made profit during a given period, the most useful financial statement would be the balance sheet