Question 1 of 15 1.0\/ 1.0 Points<\/p>\n
Assets are listed on the balance sheet in order of:<\/p>\n
I) Decreasing liquidity<\/p>\n
II) Decreasing size<\/p>\n
III) Increasing size<\/p>\n
IV) Relative life<\/p>\n
A.I only<\/p>\n
B.III and IV only<\/p>\n
C.II only<\/p>\n
D.IV only<\/p>\n
Question 2 of 15 0.0\/ 1.0 Points<\/p>\n
The difference between Total Assets of a firm and its Total Liabilities is called.<\/p>\n
A.Net working capital<\/p>\n
B.Net current assets<\/p>\n
C.Net worth<\/p>\n
D. None of the above<\/p>\n
Question 3 of 15 1.0\/ 1.0 Points<\/p>\n
The difference between Current Assets of a firm and its Current Liabilities is called.<\/p>\n
A.Net worth<\/p>\n
B.Net working capital<\/p>\n
C. Gross working capital<\/p>\n
D. None of the above<\/p>\n
Question 4 of 15 1.0\/ 1.0 Points<\/p>\n
Which of the following is an example of leverage ratios?<\/p>\n
A. Debt-Equity ratio<\/p>\n
B. Quick ratio<\/p>\n
C. Payout ratio<\/p>\n
D. Return on equity<\/p>\n
Question 5 of 15 1.0\/ 1.0 Points<\/p>\n
Which of the following is an example of liquidity ratios?<\/p>\n
A. Times interest earned (TIE)<\/p>\n
B.P\/E ratio<\/p>\n
C. Return on equity<\/p>\n
D. Quick ratio<\/p>\n
Question 6 of 15 1.0\/ 1.0 Points<\/p>\n
Given the following data:<\/p>\n
Current assets = 500<\/p>\n
Current liabilities = 250<\/p>\n
Inventory = 200<\/p>\n
Account receivables = 200<\/p>\n
Calculate the current ratio:<\/p>\n
A.2.0<\/p>\n
B.1.0<\/p>\n
C.1.5<\/p>\n
D. None of the above<\/p>\n
Current Ratio = 500\/250 = 2.0<\/p>\n
Question 7 of 15 1.0\/ 1.0 Points<\/p>\n
Given the following data:<\/p>\n
Sales = 3200<\/p>\n
Cost of goods sold = 1600<\/p>\n
Average total assets = 1600<\/p>\n
Average inventory = 200<\/p>\n
Calculate the asset turnover ratio:<\/p>\n
A.2.0<\/p>\n
B.0.9375<\/p>\n
C.1.33<\/p>\n
D. None of the above<\/p>\n
Asset turnover ratio = 3200\/1600 = 2.0<\/p>\n
Question 8 of 15 1.0\/ 1.0 Points<\/p>\n
Efficiency ratios indicate:<\/p>\n
I) How productively is the firm utilizing its assets.<\/p>\n
II) How liquid is the firm.<\/p>\n
III) How profitable is the firm.<\/p>\n
IV) How highly is the firm valued by investors.<\/p>\n
A.I only<\/p>\n
B.II only<\/p>\n
C.III only<\/p>\n
D.III and IV only<\/p>\n
Question 9 of 15 1.0\/ 1.0 Points<\/p>\n
Profitability ratios indicate:<\/p>\n
I) How productively is the firm utilizing its assets.<\/p>\n
II) How liquid is the firm.<\/p>\n
III) How profitable is the firm.<\/p>\n
IV) How highly is the firm valued by the investors.<\/p>\n
A.I only<\/p>\n
B.II only<\/p>\n
C.III only<\/p>\n
D.III and IV only<\/p>\n
Question 10 of 15 1.0\/ 1.0 Points<\/p>\n
Given the following assets;<\/p>\n
I) Long-term assets<\/p>\n
II) Inventories<\/p>\n
III) Receivables<\/p>\n
IV) Marketable securities<\/p>\n
Which is the least liquid of these assets?<\/p>\n
A.I<\/p>\n
B.II<\/p>\n
C.III<\/p>\n
D.IV<\/p>\n
Question 11 of 15 1.0\/ 1.0 Points<\/p>\n
Given the following data:<\/p>\n
Total current assets = $852<\/p>\n
Total current liabilities = $406<\/p>\n
Long-term debt = $442<\/p>\n
Calculate the net working capital.<\/p>\n
A.$446<\/p>\n
B.$852<\/p>\n
C.$410<\/p>\n
D. None of the above<\/p>\n
Net working capital = 852 – 406 = 446<\/p>\n
Question 12 of 15 1.0\/ 1.0 Points<\/p>\n
The cash budget is the primary short-term financial planning tool. The key reasons a cash budget is created are:<\/p>\n
I) To estimate your investment in assets<\/p>\n
II) To estimate the size and timing of your new cash flows<\/p>\n
III) To prepare for potential financing needs<\/p>\n
A.I only<\/p>\n
B.II and III only<\/p>\n
C.II only<\/p>\n
D.III only<\/p>\n
Question 13 of 15 1.0\/ 1.0 Points<\/p>\n
Net working capital is defined as:<\/p>\n
A. The current assets in a business<\/p>\n
B. The difference between current assets and current liabilities<\/p>\n
C. The present value of all short-term cash flows<\/p>\n
D. The difference between all assets and liabilities<\/p>\n
Question 14 of 15 1.0\/ 1.0 Points<\/p>\n
Cash inflow in cash budgeting comes mainly from:<\/p>\n
A. Collection on accounts receivable<\/p>\n
B. Short-term debt<\/p>\n
C. Issue of securities<\/p>\n
D. None of the above<\/p>\n
Question 15 of 15 0.0\/ 1.0 Points<\/p>\n
The firm’s internal growth rate is defined as:<\/p>\n
A. retained earnings\/net income<\/p>\n
B. retained earnings\/net assets<\/p>\n
C. retained earnings\/total assets<\/p>\n
D. none of the above<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1 of 15 1.0\/ 1.0 Points Assets are listed on the balance sheet in order of: I) Decreasing liquidity II) Decreasing size III) Increasing size IV) Relative life A.I only B.III and IV only C.II only D.IV only Question Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53229","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/53229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=53229"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/53229\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=53229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=53229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=53229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}