Question

True/False: Please mark your answers clearly on the answer table. 6. When manufacturers sell their products to dealers, who, in turn, sell products in their own local market, it is known as a dealer-distribution system. 7. If total asset value increases, owner equity will also increase. If a mortgage equals $100,000 and the first principal payment of $10,000 is to be paid 18 months after the loan is made, the amount recorded as a current liability on the balance sheet prepared at the loan origination would be $0. 9. The set of ratios that is used to evaluate an agribusiness firm may differ from the set of ratios used to evaluate a nonagricultural firm. 10. Working capital is one measure of solvency.
I am not sure about questions 8 and 9 specifically!

Answer 1

6) True. The distribution system is dealer based. Normally distributors are wholesalers in a region and dealers are retailers in a local area.

7) True. Owner equity = Total assets - Total liabilities

8) True. Current liability is liability that has to be paid within one year.

9) True. Set of ratios may differ from business to business.

10) True. Working capital is needed to run business and is one measure of solvency.