Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) The ratio, plant assets to long-term liabilities, is a measure of a company's ability to obtain additional long-term financing.
_____ b) Generally, a company's current assets should be purchased using long-term financing such as bonds payable.
_____ c) Ratios that measure a company's profitability provide some measure of the effectiveness of the company's management.
_____ d) Net margin indicates the amount remaining from each sales dollar after cost of goods sold has been subtracted out.
_____ e) Net margin is also sometimes called the return on sales ratio.