Question 1 (1 point) Comumon-size statements, ratio analyses, and statement comparisons are tools for making better financial decisisins. True False Question 2 (1 point) Datil creates a cost, bet it may reduee expenses of increase incoene to ofiset that cost. True False Question 3 (1 point) All the following financial ratios show improvement as they get bigger EXCEFT net income margin. interest coverage ratio. debt to. assets. a and b. a,b, and c. Question 4 (1 point) On the common-size balance aheet, each asset, liability. and net worth is shown as a percentage of total inceene. total assets. total liabilibies. total expenses. total debt. Question 5 (1 point) Diversification is a good risk management strategy because it spreads risk. True False Question 6 (1 point) When you ingut your checkbook data, the financial software does the bookkeeping. True False Question 7 (1 point) Bankrupt firns way continue in besiness because creditars would peefer to get paid in full later rasher than less now or not at all. True False Question 8 (1 point) Froe cash flow is another term for desposable income. True False Question 9 (1 point) Using your conmon-size incume statement, yoa rank your expenses by size and discover that a surprisingly lange percentuge of your income is going to recreation. How can you use this informatioe? Re-allocate inconse. Make different lifestyle cboices. Redoce tecteation expense. a. and b. Question 10 (1 point) The cost of issaing eqaity is sharing the benefits of investment. possibly paying capital gains tax. carrying greater debt. a and b, a. b. and c. Question 11 (1 point) Cash flows from investing are non-recurring and result from buying or selling assets. True False Question 12 (1 point) Finascial planning guarantees that you will be able to take advastage of opportunities and avoid disappointments. True False