1. Question: The _____________ states that if bond indentures require periodic repayments of principal on long-term liabilities, the denominator of the interest coverage ratio might include such repayments.

    A
    Debt Equity Ratio

    B
    Asset Turnover Ratio

    C
    Accounts Receivable Turnover

    D
    Fixed Charges Coverage Ratio

    Note: Answer not sure
    1. Report
  2. Question: Assume that the current ratio of XYZ Company is 2.5:1. What effect would an equal dollar increase in current assets and current liabilities have on the current ratio?

    A
    It would increase the current ratio.

    B
    It would decrease the current ratio.

    C
    It would have no effect on the current ratio.

    D
    The answer cannot be determined from the information given.

    Note: Answer not sure
    1. Report
  3. Question: Which of the following is NOT used to assess short-term liquidity risk?

    A
    Accounts Receivable Turnover

    B
    Operating Cash Flow to Current Liabilities Ratio

    C
    Current Ratio

    D
    Quick Ratio

    Note: Answer not sure
    1. Report
  4. Question: Assume that the debt-equity ratio of XYZ Company is .5 to 1. If the company issued a long-term note in the purchase of some land, what effect would this transaction have on the debt-equity ratio?

    A
    It would decrease the debt-equity ratio.

    B
    It would increase the debt-equity ratio.

    C
    It would have no effect on the debt-equity ratio.

    D
    The answer cannot be determined from the information given.

    Note: Answer not sure
    1. Report
  5. Question: The ________________ generally includes cash, marketable securities, and accounts receivable in its numerator.

    A
    Quick Ratio

    B
    Debt Equity

    C
    Asset Turnover

    D
    Accounts Receivable Turnover

    Note: Answer not sure
    1. Report
  6. Question: ____________ is/are the excess of expenses over revenue for a given period.

    A
    Net profit

    B
    Assets

    C
    Equity

    D
    Net loss

    Note: Answer not sure
    1. Report
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