What is meant by "inflation"? A decrease in prices resulting in a decrease in purchasing power of a dollar An increase in prices, resulting in an increase of purchasing power of a dollar (or other money) An increase in available supply A decrease in prices, but no impact on purchasing power An increase in prices, resulting in a reduction of purchasing power of a dollar (or other money) Which financial ratio category provides information on a company's capacity to meet their current financial obligations? i Liquidity ii. Financing Structure (also known as capitalization) i Operating iv. Profitability Ev. Asset Usage True or false: accounts receivable are included in the current ratio but not the acid test. Select one: True False Which accounting method books transactions when they occur, regardless of when payment changes hands. Oi Accrual accounting ii. Cash accounting i. Fund accounting iv. Shell company accounting In times of high inflation, comparing financial results over time is not a problem. For example, Net Income of $1,000,000 today is worth the same as profits of $1,000,000 2 years ago. Select one: True False