1. The vertical analysis prepared for an income statement will result in each financial figure being expressed as a percentage of sales. (Points : 1)

True False

Question 2. 2. A horizontal analysis of a balance sheet will result in each financial figure being expressed as a percentage of total assets. (Points : 1)

True False

Question 3. 3. Working capital is calculated as current assets divided by current liabilities. (Points : 1)

True False

Question 4. 4. Positive working capital is a guarantee that the company will have adequate cash flow to meet all cash needs in the coming fiscal year. (Points : 1)

True False

Question 5.5. Generally speaking, a higher inventory turnover ratio is better for a firm than a lower inventory turnover ratio, all else being equal. (Points : 1)

True False