Indicate Whether Each of the Following Statements Is True or False

Short Answer

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 liquidity.
________ e)Liquidity is the ability of a business to repay liabilities in the long run.