Which statement is true?
a. The higher the company's cash to current liabilities ratio, the better is the company.
b. The higher the company's cash...
Which statement is true:
Which statement is true:
a. When examining a company's current ratio it is important to also assess the quality of the current assets and liabilities.
b....
Which statement is true:
Which statement is true:
a. Liquidity is viewed as the company's ability to meet its short term and long term obligations.
b. Liquidity is generally...
The dividends paid are part of which section:
The dividends paid are part of which section:
a. Investing activities
b. Financing activities
c. Operating activities
d. None of these
Answer:...
Which statement is true:
Which statement is true:
a. The issuance of stock might include the capital stock account and retained earnings.
b. The issuance of stock might include...
Which statement is true:
Which statement is true:
a. Amortization expense is treated as an increase in cash flow from investing activities.
b. Amortization expense is...
Which statement is true:
Which statement is true:
a. Depreciation expense is treated as an increase in cash flow from investing activities.
b. Depreciation expense is...
Which statement is the most correctable?
Which statement is the most correctable?
a. Operating Activities include changes in cash, account receivable, inventory
b. Operating Activities...
Which statement is true:
Which statement is true:
a. Net income is treated as an increase in cash flows from financing activities.
b. All of these
c. Net income is treated...
Losses from investing activities are treated as a increase in cash flows from operating activities. The reason for this adjustment is that:
Losses from investing activities are treated as a increase in cash flows from operating activities. The reason for this adjustment is that:
a. These...
Working capital is:
Working capital is:
a. the amount by which the value of a company's current assets exceeds its current liabilities
b. the amount by which the value...
Asset turnover:
Asset turnover:
a. often used to measure how well a firm utilizes its assets.
b. often used to measure a firm's ability to pay its interest...
The Times Interest Earned ratio is:
The Times Interest Earned ratio is:
a. often used to measure how well a firm utilizes its assets.
b. often used to measure a firm's ability to pay...
Which of the following does not represent future expected cash inflows?
Which of the following does not represent future expected cash inflows?
a. accounts receivable
b. prepaid expenses
c. inventory
d. notes receivable
Answer:...
Which of the following industries would you expect to have the highest inventory turnover?
Which of the following industries would you expect to have the highest inventory turnover?
a. restaurant
b. car dealer
c. jewelry store
d....
Which of the following would be least likely to affect the quality of receivables?
Which of the following would be least likely to affect the quality of receivables?
a. Credit policy
b. Right of return policy
c. Collection...
Which of the following is not a measure of a company's a solvency?
Which of the following is not a measure of a company's a solvency?
a. Debt to equity ratio
b. Equity to assets ratio
c. Sales to assets ratio
d....
Which of the following is likely to be used to measure a company's solvency?
Which of the following is likely to be used to measure a company's solvency?
a. Net operating profit margin
b. Current ratio
c. Financial leverage
d....
Which of the following is not likely to be used to measure a company's liquidity?
Which of the following is not likely to be used to measure a company's liquidity?
a. Working capital
b. Financial leverage
c. Current ratio
d....
Which of the following best describes for the current ratio?
Which of the following best describes for the current ratio?
a. debt ratio
b. operating performance ratio
c. liquidity ratio
d. efficiency...
A current ratio of 2.5:
A current ratio of 2.5:
a. Tells us that current assets are twice and a half current liability.
b. Is very good.
c. Indicates a problem with liquidity...
The common tool of financial statement analysis which compares a company's financial condition and performance across time is:
The common tool of financial statement analysis which compares a company's financial condition and performance across time is:
a. horizontal analysis
b....
The ratio of the cost of goods sold to total assets is call:
The ratio of the cost of goods sold to total assets is call:
a. Asset turnover
b. ROA
c. Asset efficiency
d. Inventory turnover
Answer: ...
It is usually the most liquid of the current assets. What is it?
It is usually the most liquid of the current assets. What is it?
a. Cash
b. Inventory
c. Marketable security
d. All of these
Answer: ...
Which of the following statements is most correct?
Which of the following statements is most correct?
a. The cheapest form of capital is equity
b. Companies with the highest current ratios have...
Which of the following statements is most correct?
Which of the following statements is most correct?
a. Common Size financial income statements provide information about major sources and uses...
When a company is experiencing rapid growth, which of the following statements is the most correct?
When a company is experiencing rapid growth, which of the following statements is the most correct?
a. Cash flow from operations will be greater...
It is usually the least liquid of the current assets. What is it?
It is usually the least liquid of the current assets. What is it?
a. Cash
b. Inventory
C. Marketable security
d. All of these
Answer: ...
Cash flows from investing activities include which activity?
Cash flows from investing activities include which activity?
a. Changes in accounts receivable
b. Sale of office building
c. Repaying principal to...
When a long-term asset is sold for cash at a price in excess of its book value, the sale should be reported as an inflow of cash from an investing activity equal to which of the following?
When a long-term asset is sold for cash at a price in excess of its book value, the sale should be reported as an inflow of cash from an investing activity...
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