True or False please answer all

Since a ratio is comprised of two elements, it becomes essential for the financial statement analyst to examine both components of the ratio. The current ratio is a measure of liquidity and examines the ability of the firm to meet its short term financial obligations. ROA measures the rate of return on total resources employed The dividend payout ratio illustrates the percent of net profit after tax distributed to the shareholders as cash dividends. In calculating the Accounts Payable Turnover ratio, the Cost of Goods Sold may be substituted for Purchases if the Purchases figure is not readily available. Ratio analysis involves the selection and interpretation of relationships between balance sheet and income statement Items at a given time. These relationships can be a comparison between two balance sheet items, two income statement items, or between a balance sheet item and an income statement item. of the various tools of financial statement analysis, ratios tend to be the least known and least frequently used. 19. The quality of the underlying current assets has little effect on the adequacy of the current ratio. Solvency is a going concern concept which refers to the ability of the firm to pay its short term creditors (obligations as they become due. Insolvency is a minor concern which may be solved/corrected thus permitting the business to continue its operations. Notes Payable-Bank can best be considered a passive component of current liabilities since the management of the firm has little control over this item. Net working capital is a measure of a firm's liquidity in an absolute dollar sense. The slower the accounts receivable turnover (increase in the number of days in the collection period), the greater the investment in working capital, all things being equal Since a ratio is comprised of two elements, it becomes essential for the financial statement analyst to examine both components of the ratio. The current ratio is a measure of liquidity and examines the ability of the firm to meet its short term financial obligations. ROA measures the rate of return on total resources employed The dividend payout ratio illustrates the percent of net profit after tax distributed to the shareholders as cash dividends. In calculating the Accounts Payable Turnover ratio, the Cost of Goods Sold may be substituted for Purchases if the Purchases figure is not readily available. Ratio analysis involves the selection and interpretation of relationships between balance sheet and income statement Items at a given time. These relationships can be a comparison between two balance sheet items, two income statement items, or between a balance sheet item and an income statement item. of the various tools of financial statement analysis, ratios tend to be the least known and least frequently used. 19. The quality of the underlying current assets has little effect on the adequacy of the current ratio. Solvency is a going concern concept which refers to the ability of the firm to pay its short term creditors (obligations as they become due. Insolvency is a minor concern which may be solved/corrected thus permitting the business to continue its operations. Notes Payable-Bank can best be considered a passive component of current liabilities since the management of the firm has little control over this item. Net working capital is a measure of a firm's liquidity in an absolute dollar sense. The slower the accounts receivable turnover (increase in the number of days in the collection period), the greater the investment in working capital, all things being equal