1. The cause of changes in key ratios must be investigated before drawing conclusions. true/false?
2. Liquidity measures are intended to indicate an entity's ability to pay long-term debts as they come due. true/false?
3. If a corporation has only common stock outstanding, book value per share can be determined by dividing the total stockholders' equity by the number of shares outstanding at the end of the year. true/false?
4. The ratio of liabilities to stockholders' equity is a measure of the extent of leverage, or proportion of borrowed capital, with which a business operates. true/false?