1. Operating activities involve the income statement and current accounts of the balance sheet.

True

False

2. Operating activities have to do with running the business on a day-to-day basis.

True

False

3. Financing activities also include long-term purchases and sales of financial assets.

True

False

4. A firm can never go out of business as long as it makes a profit, even if it manages its cash poorly.

True

False

5. Liquidity Ratios measure the firm's ability to meet its short-term financial obligations.

True

False