True/False Indicate whether the statement is true or false l. In general, the role of the financial manager is to plan for the acquisition and use of funds so as to maximize the value of the firm. 2. Nations do not have the sovereignty to expropriate the assets of a firm without compensation. 3. An increase in an asset account is a source of cash, whereas an increase in a liability account is a use of cash 4. If a firm has high current and quick ratios, this always is a good indication that a firm is managing its liquidity position well. 5. The information contained in the annual report is used by investors to form expectations about future earnings and dividends 6. Retained earnings is the cash that has been generated by the firm through its operations which has not been paid out to stockholders as dividends. Retained earnings are kept in cash or near cash accounts and thus, these cash accounts, when added together, will always be equal to the total retained earnings of the firm 7. One advantage of using common stock as a source of funds is that common stock does not legally obligate the firm to make payments to stockholders