Write "T" if the statement is true and "F" if the statement is false after the statement number. .The agency problem is the acquisition of a firm by another firm that is not supported by Management. The current ratio provides a better measure of overall liquidity only when a firm's inventorics can be casily converted into cash. Otherwise the quick ratio is a better measure of overall liquidity. 3.Given the financial manager's preference for faster receipt of cash flows, a longer depreciable life is preferred to a shorter one. When computing an interest rate, the rate will decrease the larger the future value, holding the present value and the number of periods constant