True or False:

Assets represent the investment decision of a firm while the right hand side of a balance sheet represents the financing decision.

Assets are purchased to generate cash flows.

All else being equal, a firm that has inventory is likely to have a lower quick ratio than current ratio.

The three golden ratios include all of those below except _____________________ .

Group of answer choices

asset margin

operating margin

gross margin

net margin

Which ratio would you use to determine whether a firm could afford its debt.

Group of answer choices

debt to equity

debt to asset

debt to fixed asset

TIE