In order to gain from mutual trade, countries should produce goods in which they have relative advantage in terms of opportunity cost. They need not be the lowest absolute cost producers. It is all about the best or most efficient use of a country's resources.

Current liabilities are used in the denominator for the: current, quick, and cash ratios.

A stock split will reduce the price and earnings per share proportionately, leaving the price-to-earnings ratio the same.

The accounts receivable period can be shorter than the cash cycle.

If the data are already arranged in the form of a predetermined pattern, using systematic sampling can introduce a systematic pattern in the sample itself, which would lead to erroneous inferences about the entire population.