1. Indicate whether the following statements are TRUE (T) or FALSE (F).
2. 1)It is possible for a borrower to relax debt restrictions by changing accounting methods it uses for financial reporting.
3. 2)Depreciation method used by a firm for preparing financial statements has to be the same as the depreciation method that the firms uses for preparing its tax returns (to compute the tax obligation to the government).
4. 3)Higher profit margin ratio suggests less sales discount and better cost control.
5. 4)Higher asset turnover ratio suggest less efficient utilization of assets.
6. 5)Higher times interest earned ratio suggest better long term solvency.
7. 6)Increasing the debt to equity ratio is always beneficial for the compan