1-11. True or False please do whole thing its easy

TRUE AND FALSE (100 pts.) Please use (+) for true and (0) for false An expanding firm will general ly not have any cash shortages simply because the firm is growing and generating more and 1. more cash. A firm may continue to pay dividends even though it experienced a net loss. 2. Significant weight is seldom given to the cash ratio unless the firm is experienc ing financial difficulties 3. Ason Either a drop in the net profit margin or a drop in total asset turnover, or both, can cause Return on Assets to fall. 4. The Times Interest Earned Ratio uses Earnings Before Interest and Taxes (EBIT) as its numerator since the ability to pay current interest charges is not affected by income taxes. 5. The absolute benchmark of 2 to 1 for a current ratio is generally recognized as both me aning ful and desirable. A firm whose inventory consists of custom made, special ty equipment normally would have large work- in- process inventory and little finished goods and raw materials inventory. 7 Progress payments may be required. Aside from its traditional definition, the debt/worth ratio provides an indication of the ability of the firm to borrow in the future. 8. ent linb bas 11relo control cvar this icem The long te rm debt-to-capitalization ratio shows what portion of the firm's total capitalization is financed with equity rather than debt. 9. Reserve accounts do not represent definite commitments to pay out funds in the future , but are an estimate of such a liability c4pibal al1 Typically, the greater the equity in a company, the less the credi tor ' s risk