Indicate whether each of the following statements is true or false.
_____ a) Operating cycles for most businesses are less than one year.
_____ b) If a business does not plan to use any of its current assets to repay a debt, then that debt is listed as long term even if it is due within a year.
_____ c) The current ratio is computed by dividing current assets by net income.
_____ d) The current ratio is a useful measure of a company's solvency.
_____ e) Liquidity is the ability of a business to repay liabilities in the long run.

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The Answer of Indicate whether each of the following statements is true or false.
_____ a) Operating cycles for most businesses are less than one year.
_____ b) If a business does not plan to use any of its current assets to repay a debt, then that debt is listed as long term even if it is due within a year.
_____ c) The current ratio is computed by dividing current assets by net income.
_____ d) The current ratio is a useful measure of a company's solvency.
_____ e) Liquidity is the ability of a business to repay liabilities in the long run.

Indicate Whether Each of the Following Statements Is True or False