(TRUE or FALSE?) An asset's liquidity has two dimensions: (1) the speed and ease with which the asset can be sold and (2) whether the asset can be sold without loss of value.

Group of answer choices

True

False

(TRUE or FALSE?) If an asset is depreciable, the amount of depreciation shown on the balance sheet does not necessarily reflect the actual loss of economic value.

Group of answer choices

True

False

(TRUE or FALSE?) If a company sells fixed assets during the year, it decreases cash because it must use cash to pay for the selling.

Group of answer choices

True

False

(TRUE or FALSE?) For most businesses, the largest cash expenses are depreciation and amortization of short-term assets.

Group of answer choices

True

False

(TRUE or FALSE?) Preferred stock pays dividends at an increasing or decreasing rate, which means that the firm can increase or decrease the dividend rate, regardless of whether the firm's earnings increase or decrease.

Group of answer choices

True

False

(TRUE or FALSE?) Net income = Revenues Expenses.

Group of answer choices

True

False

(TRUE or FALSE?) If common stock dividends are not paid, the firm is typically required to pay dividends that have been skipped in the past before they can pay dividends to preferred stockholders.

Group of answer choices

True

False

(TRUE or FALSE?) An increase in bonds and private placement debt is a use of cash.

Group of answer choices

True

False