True$/$False

$1.$

$2.$ Cash is the most important and most valuable asset for a company.

$3.-$ A company with accounts receivable has a risk that they will not get paid.

$3.$ The estimate of how much accounts receivable will not get paid affects retained earnings.

$4.$ A reconciliation should be completed by the same person who originally recorded the transactions being reconciled.

$5.$ Borrowing more cash is a long term solution for a company needing cash to pay employees.

$6.$ The term Accounts Receivable, Net means that the allowance for uncollectible accounts has been subtracted.

$7.$ A purchase of prepaid insurance policy with cash will have no effect on the quick ratio

$8.$ The sale of inventory to a customer for more than the cost will increase the current ratio.

$9.$ A company can never be too liquid.

$10.$ The quick ratio is always higher than the current ratio.

$11.-$ To calculate average accounts receivable for $2020,$ the Accounts Receivable amounts for $2019$ and for $2020$ are used.

$12.-$ When inventory turnover goes up$,$ days sales in inventory goes down.

$13.$ The longer it takes to sell inventory the better for a company.

$14.$ One number used for calculating the net profit margin is the same as for calculating return on investment$/$assets$.$

$15.$ Gross profit will always be higher than net profit before taxes.

$16.$ Cost of goods sold is not used in the calculation of any of the profitability ratios.

$17.$ Profitability ratios are never shown as percentages.