true or false

1. Bondholders claims on the assets of the corporation rank ahead of stockholders
2. Inventory turnover shows how many times the average inventory was sold during the year.
3. Bonds of major corporations are traded on bond exchanges
4. There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method.
6. Bondholders are creditors of the issuing corporation
7. In a company’s annual report, the section called management discussion and analysis provides critical information in interpreting the financial statements and assessing the future of the company