The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in total liabilities and stockholders' equity.

True

False

The payback method of making capital budgeting decisions does not give full consideration to the time value of money.

True

False

The book value of old equipment is a relevant cost in a decision to replace that equipment. (Ignore taxes.)

True

False

The acid-test ratio is usually greater than the current ratio.

True

False