1. Question: In computing the quick ratio, which of the following items is customarily excluded from the numerator?

    A
    Cash

    B
    Inventory

    C
    Marketable Securities

    D
    Accounts Receivable

    Note: Answer not sure
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  2. Question: Which of the following terms refers to the "nearness of cash" of a firm's assets?

    A
    Liquidity

    B
    Marketability

    C
    Turnover

    D
    Net Income

    Note: Answer not sure
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  3. Question: The ______________ is a useful measure for assessing a firm's performance in using assets to generate earnings.

    A
    Profit Margin Ratio

    B
    Financial Leverage

    C
    Rate of Return on Assets

    D
    Working Capital

    Note: Answer not sure
    1. Report
  4. Question: Which of the following can be described as "claims on resources that result from benefits previously received by the company, and which require that a specified amount be paid on a specified date"?

    A
    Shareholders' Equity

    B
    Contributed Capital

    C
    Liabilities

    D
    Retained Earnings

    Note: Answer not sure
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  5. Question: Which of the following approaches does the Financial Accounting Standards Board follow in establishing generally accepted accounting principles?

    A
    An approach that ensures that financial reports conform to income tax reports

    B
    A deductive theory-based approach

    C
    A political lobbying approach, which selects accounting methods favored by those involved with financial accounting reports

    D
    Both b and c

    Note: Answer not sure
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  6. Question: A ______________ involves comparing a given firm's ratios with those of other firms for a particular period.

    A
    Time Sensitive Analysis

    B
    Profit Margin Analysis

    C
    Return on Assets Analysis

    D
    Cross-Section Analysis

    Note: Answer not sure
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  7. Question: The ______________ is computed by dividing cash flow from operations by average current liabilities.

    A
    Debt Equity Ratio

    B
    Cash Flow from Operations to Current Liabilities Ratio

    C
    Current Ratio

    D
    Quick Ratio

    Note: Answer not sure
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  8. Question: Which of the following ratios assesses the firm's operating performance independently of financing decisions?

    A
    Rate of Return on Assets

    B
    Inventory Turnover

    C
    Profit Ratio

    D
    Net Income

    Note: Answer not sure
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  9. Question: The ______________ is a private sector group that has been given the responsibility of establishing acceptable accounting standards in the United States.

    A
    IASC

    B
    SEC

    C
    GAAP

    D
    FASB

    Note: Answer not sure
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  10. Question: The primary source of cash for most firms should be _______________.

    A
    operating activities

    B
    contributed capital

    C
    assets

    D
    financing activities

    Note: Answer not sure
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