Only two questions are posted here. Did you mean to post twenty?
Yes there should be 20 - here they are:
Ratio analysis can be useful for:
A. historical trend analysis within a firm.
B. comparison of ratios within a single industry.
C. measuring the effects of financing.
D. all of the above
Question 2 of 20
A short-term creditor would be most interested in:
A. profitability ratios.
B. asset utilization ratios.
C. liquidity ratios.
D. debt utilization ratios.
Question 3 of 20
Which two ratios are used in the DuPont system to create return on assets?
A. Return on assets and asset turnover
B. Profit margin and asset turnover
C. Return on total capital and the profit margin
D. Inventory turnover and return on fixed assets
Question 4 of 20
The Bubba Corp. had net income before taxes of $200,000 and sales of $2,000,000. If it is in the 50% tax bracket, its after-tax profit margin is:
Question 5 of 20
ABC Co. has an average collection period of 60 days. Total credit sales for the year were $3,000,000. What is the balance in accounts receivable at year-end?
Question 6 of 20
Asset utilization ratios:
A. relate balance sheet assets to income statement sales.
B. measure how much cash is available for reinvestment into current assets.
C. are most important to stockholders.
D. measures the firm's ability to generate a profit on sales.
Question 7 of 20
Total asset turnover indicates the firm's:
B. debt position.
C. ability to use its assets to generate sales.
Question 8 of 20
If accounts receivable stays the same and credit sales go up:
A. the average collection period will go up.
B. the average collection period will go down.
C. accounts receivable turnover will decrease.
D. B and C.
Question 9 of 20
A firm's long term assets = $75,000, total assets = $200,000, inventory = $25,000 and current liabilities = $50,000. What are the current ratio and the quick ratio?
A. Current ratio = 0.5; quick ratio = 1.5
B. Current ratio = 1.0; quick ratio = 2.0
C. Current ratio = 1.5; quick ratio = 2.0
D. Current ratio = 2.5; quick ratio = 2.0
Question 10 of 20
Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would probably look primarily at the firm's:
A. debt utilization ratios.
B. liquidity ratios.
C. asset utilization ratios.
D. profitability ratios.
Question 11 of 20
An increasing average collection period indicates:
A. the firm is generating more income.
B. accounts receivable are going down.
C. the company is becoming more efficient in its collection policy.
D. the company is becoming less efficient in its collection policy.
Question 12 of 20
In addition to comparison with industry ratios, it is also helpful to analyze ratios using:
A. trend analysis.
B. historical comparisons.
C. neither; only industry ratios provide valid comparisons.
D. both a and b.
Question 13 of 20
If a firm has both interest expense and lease payments:
A. times interest earned will be smaller than fixed charge coverage.
B. times interest earned will be greater than fixed charge coverage.
C. times interest earned will be the same as fixed charge coverage.
D. fixed charge coverage cannot be computed.
Question 14 of 20
Disinflation, as compared to inflation, would normally be good for investments in:
C. collectible antiques.
Question 15 of 20
The __________ method of inventory costing is least likely to lead to inflation-induced profits.
C. Weighted average
D. Lower of cost or market
Question 16 of 20
A large extraordinary loss has what effect on cost of goods sold?
A. Raises it
B. Lowers it
C. Has no effect
D. Need more information
Question 17 of 20
Which of the following is a potential problem of utilizing ratio analysis?
A. Trends and industry averages are historical in nature.
B. Financial data may be distorted due to price-level changes.
C. Firms within an industry may not use similar accounting methods.
Question 18 of 20
If government bonds pay 8.5% interest and insured savings accounts pay 5.5% interest, stockholders in a moderately risky firm would expect return-on-equity values of:
D. above 8.5%, but the exact amount is uncertain.
Question 19 of 20
The most rigorous test of a firm's ability to pay its short-term obligations is its:
A. current ratio.
B. quick ratio.
C. debt-to-assets ratio.
D. times-interest-earned ratio.
Question 20 of 20
If the company's accounts receivable turnover is increasing, the average collection period:
A. is going up slightly.
B. is going down.
C. could be moving in either direction.
D. is going up by a significant amount.
All my answered matched yours ~ Fingers crossed Your help is appreciated
You went off line as soon as I posted another set of questions please disregard - I figured it out!
No problem. Let me know when you next need help!
When is your deadline for this quiz?
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I'm sorry, but I won't have a chance to do this one in the next few hours. I would suggest that you make a new post of this question, open to all Homework experts.
I saw where I could purchase it for 3.00 but wasn't able to get the answers - any suggestions. And thanks for letting me know so quickly that you cannot help. :o(
You might contact the expert who originally posted those answers and ask for his or her assistance.
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