is it right ?

If equal amounts are added to the numerator and the denominator of the currer ratio will always: Question 6 Correct Mark 3.00 out of 3.00 Select one: a. Increase . b. Decrease Strange but it is true. Try it. Say the current assets is 200 100,000. So the ratio is 2. Now add say 100,000 to both numerator and der new current ratio is 1.5. Try any other number combination you will arrive a c. Stay the same d. Equal zero e. Cant say from the information given The correct answer is: Decrease A general rule to use in assessing the average collection period is Question 7 Correct Mark 3.00 out of 3.00 Select one: a that it should not exceed 30 days b. it can be any length as long as the customer continues to buy merchand c. that it should not greatly exceed the discount period . d. that it should not greatly exceed the credit term period e. All of the above The correct answer is that it should not greatly exceed the credit term period The debt to total asset ratio measures Question 8 Correct Mark 3.00 out of 3.00 Select one: a. the company's profitability b. whether interest can be paid on debt in the current year c. measures the proportion of interest paid relative to dividends paid d. the percentage of the total assets provided by creditors e. Debt to total asset ratio measures all of the above. The correct answer is the percentage of the total assets provided by creditors