Question 1 A current ratio above 1 to 1 means a firm is liquid and can cover short-term debt. O True O False Question 2 Accounts receivable is a component of a retailer's current assets. O True O False Question 3 Which of the following statements is NOT true? Gross margin - "the higher the better" Net operating profit percentage - "the higher the better" SG & A- "the higher the better" Operating expenses - "the lower the better"