Which of the statements below is considered incorrect regarding the relationship betweem depreciation and cash? O A. Depreciation is an allocation of the cost of an asset to the periods in which the asset is used OB. Accumulated depreciation is not a pile of cash waiting to be used. OC. Recording depreciation expense provides a means of setting aside cash for the replacement of an asset. OD. Depreciation does not generate cash. Short-term liquidity is a company's ability to: O A. turn accounts receivable into cash. O B. sell inventory. OC. shift current liabilities into long-term liabilities OD. pay current liabilities as they become due. From the point of view of a company that issued bonds, debt is often a more attractive way of financing long-term investments for which of the following reasons: 1. Debt is less risky than common shares. 2. Bonds are not tradeable on organized exchange markets. 3. Interest payments are tax deductible and dividend payments are not. 4. Ownership rights are kept by the present shareholders. O A. 3 and 4 OB 1 and 3 O C 2 and 4 OD. 1, 3 and 4 Financial ratios, which assess the profitability of a company, include all of the following except the O A. Gross profit percentage OB. Dividend yield ratio OC. Net profit margin ratio OD. Return on equity O E Earnings per share