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If regression analysis estimates that assets exceed liabilities and equity, the firm will require external sources of finance.​

If a firm sells inventory at cost for cash, its total assets rise.​

Regression analysis as a forecasting tool is less restrictive than the percent of sales.​

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Leverage ratios indicate the extent to which the firm uses debt financing.​

Leverage ratios indicate the extent to which the firm uses debt financing.​

A periodic payment to retire a debt is illustrative of a sinking fund.​

If two investments are mutually exclusive, the firm cannot make both investments.​

If a firm’s current assets and current liabilities decline, the firm had a cash inflow.​