True or False

1) Retained Earnings is the cash that has been granted by the firm through its operations which has not been paid out to stockholders as dividends. They are usually kept cash or near cash accounts (market securities) and this these cash accounts, when added together, will always be equal to the total retained earnings of the firm.

2) Common equity is comprised of: the common stock sold (per value), paid in capital in excess of par, and retained earnings while total equity is comprised of common equity plus preferred stock.

3) A "P&L" is the same as an Income Statement

4) If the current ratio of Firm A is greater than the current ratio of firm B, we cannot be sure that the quick ratio of Firm A is greater than that of firm B. However, if the quick ratio of Firm A exceeds that of Firm B, we can be assured that Firm A's current ratio also exceeds Firm B's current ratio.