TRUE OR FALSE (Shows explanation are required)

____45. Factors which reflect the ability of a business to pay its debts and earn a reasonable amount of income are referred to as solvency and profitability.

____46. Using measures to assess a business's ability to pay its current liabilities is called current position analysis.

____47. Current position analysis indicates a company's ability to liquidate current liabilities.

____48. The ratio of the sum of cash, receivables, and marketable securities to current liabilities is referred to as the current ratio.

____49. Solvency analysis focuses on the ability of a business to pay its current and noncurrent liabilities.

____50. In computing the rate earned on total assets, interest expense is subtracted from net income before dividing by average total assets.