Question 1

a. the objective of accounting is to provide relevant and timely information to support decision making. (True/False)

b. short-term creditors, like banks, are most interested in analyzing liquidity. (True/False)

c. both horizontal and vertical analysis involve making percentage rate calculations. (True/False)

d. there are no dollar amounts on common-size financial statements. (True/False)

e. analyzing liquidity evaluates the ability of a company to convert current assets into cash. (True/False)

f. quick assets include inventory.and prepaid expenses. (True/False)

g. working capital is a useful measure of liquidity. (True/False)