True or False
1) Liquidity ratios indicate how fast a company can generate cash to pay bills.
2) Financial ratios are exclusively used for those areas of business that involve investment decisions.
3) The current ratio is a harder test of a firm’s liquidity than the quick ratio.
4) As the interest rate increases, the interest rate factor for the present value of a dollar decreases.
5) To determine the current value of six annual payments of $3,000 at 5%, you would use the present value of a dollar table.
6) As you go further into the future, a given amount will have an increased present value.