13. A ratio is created when you divide one number by another; a percentage results when the numerator (top number) used in your division is a part of the denominator (bottom number).
    1. True
    2. False
14. 10% is expressed as 0.01 in the decimal form.
    1. True
    2. False
15. When current ratios are greater than 1 the business may have a difficult time paying its short-term debt obligations because of a shortage of current assets.
    1. True
    2. False
16. The times interest earned ratio shows the firms ability to cover interest expenses with earnings before income taxes.
    1. True
    2. False
17. Besides being the result of higher sales, a high food turnover could also mean that significant wastage, pilferage, and spoilage might have occurred.
    1. True
    2. False