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True or False? Leverage is created when a company accumulates significant amounts of Cash. Companies have experienced significant increases in accounts receivable because of cash
True or False?
Leverage is created when a company accumulates significant amounts of Cash. |
Companies have experienced significant increases in accounts receivable because of cash based sales in direct to consumer businesses. |
Long-term Marketable Securities are not as liquid as Short-term Marketable Securities and needs to be segregated. | ||||||||
Including Cash and Cash Equivalents stockpiles in Current Assets distorts the value of current assets required to operate the business. | ||||||||
When companies have significant interest-bearing Noncurrent Liabilities, these are viewed as a source of Invested Capital. | ||||||||
The classic definition of ROIC treats Noncurrent Liabilities similar to the treatment of Debt, i.e., as a source of invested capital. | ||||||||
ROA rises with high levels of Intangible Assets. | ||||||||
ROE is increased with Debt levels. | ||||||||
The core operating business has a significantly different return profile than large Cash stockpiles and Intangible Assets. | ||||||||
There is a single widely accepted ROIC calculation. | ||||||||
ROE measures NOPAT / Equity. |
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