The higher the company's cash to current liabilities ratio, the more liquid is the company.

Question 38 options:

	1) True
	2) False

Depreciation and amortization expense needs to be added back to net income if preparing the statement of cash flows using the indirect method.

Question 42 options:

	1) True
	2) False

Financial statements of a diversified company should be analyzed by segments.

Question 43 options:

	1) True
	2) False

When a company acquires another company and pooling-of-interest accounting is used, the statement of cash flows (after acquisition) will show a cash outflow in the investing section equal to the book value of the acquired company.

Question 44 options:

	1) True
	2) False

An analysis of a company's performance requires joint analysis of net income in relation to the invested capital.

Question 46 options:

	1) True
	2) False