For the true and false problems, please write the entire word True or False in the space provided.

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$\_\_\_\_\_\_\_\_1.)$ If a company has debt, the return on assets will always equal the return on equity.

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$\_\_\_\_\_\_\_\_2.)$ The balance sheet is a summary of activity over a period of time, such as one year.

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$\_\_\_\_\_\_\_\_3.)$ Money market instruments are typically low risk, low return assets.

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$\_\_\_\_\_\_\_\_4.)$ A disadvantage of bond funds is that you have less control over the timing of capital gains.

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$\_\_\_\_\_\_\_\_5.)$ Bond prices move in the same direction as interest rates.

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$\_\_\_\_\_\_\_\_6.)$ Longer$-$term bonds have less reinvestment risk.

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$\_\_\_\_\_\_\_\_7.)$ Bond funds provide a guaranteed return if held to maturity.

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$\_\_\_\_\_\_\_\_8.)$ Capital$-$intensive firms tend to have high return on assets.

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$\_\_\_\_\_\_\_\_9.)$ Convertible bonds are usually issued deep out$-$of$-$the$-$money.

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$\_\_\_\_\_\_\_\_10.)$ A Tobin$$s q value $<1\mathrm{.}0$ implies that the company is overvalued.

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$\_\_\_\_\_\_\_\_11.)$ Total shareholder equity is equal to assets minus liabilities.

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$\_\_\_\_\_\_\_\_12.)1$ basis points is equivalent to $1\%.$

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$\_\_\_\_\_\_\_\_13.)$ Corporate bonds are susceptible to being called.

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$\_\_\_\_\_\_\_\_14.)$ Liquidity ratios are not industry specific.

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$\_\_\_\_\_\_\_\_15.)$ Shorter$-$term bonds have more market $($price$)$ risk as interest rates change.

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$\_\_\_\_\_\_\_\_16.)$ Pro$-$forma financial statements include non$-$cash charges.

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$\_\_\_\_\_\_\_\_17.)$ A high inventory turnover implies that the inventory is being sold at a faster rate.

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$\_\_\_\_\_\_\_\_18.)$ For accrual$-$based accounting, revenues are recorded at the time of the sale.

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$\_\_\_\_\_\_\_\_19.)$ Debt makes a company more sensitive to the business cycle.