Please say if statement is true or false. thanks.?

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1. An increase in an asset account is a source of cash, whereas an increase in a liability account is a use of cash.

2. Depreciation, as shown on the income statement, is regarded as a use of cash, because it is an expense.

3. If a firm borrows money from a bank or reduces its level of inventory these are both examples of sources of funds.

4. When a firm pays off a loan using cash, the source of funds is the decrease in the asset account, cash, while the use of funds involves a decrease in a liability account, debt.

5. Retained earnings are the cash that has been generated by the firm through its operations which has not been paid out to stockholders as dividend. Retained earnings are kept in cash or near cash accounts and thus, these cash accounts, when added together, will always be equal to the total retained earnings of the firm.

6. If a firm has high current and quick ratios, this is always a good indication that a firm is managing its liquidity position well.

Please say if statement is true or false. thanks.?

i would have to say true

Please say if statement is true or false. thanks.?

1. True 2. True 3. True 4. True 5. not sure on this one, sounds like it may be true 6. always is a dangerous word, you have to do further research to see if that is true, there could be other things going on with the firm (fraud)

Please say if statement is true or false. thanks.?

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