A comparison between two numbers showing how many times one number exceeds the other.
return on investment
profitability ratios
ratio
efficiency ratios
2. Multiple Choice
1 minute
1 pt
Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.
liquidity ratios
efficiency ratios
leverage ratios
profitability ratios
3. Multiple Choice
30 seconds
1 pt
Financial ratios that indicate how effectively a company uses its resources to generate sales.
liquidity ratios
leverage ratios
profitability ratios
efficiency ratios
4. Multiple Choice
30 seconds
1 pt
Financial ratios that show how and to what degree a company has financed its assets.
leverage ratios
liquidity ratios
efficiency ratios
profitability ratios
5. Multiple Choice
1 minute
1 pt
Financial ratios that tell how much of each dollar of sales, assets, and owner's investments resulted in net profit.
liquidity ratios
efficiency ratios
profitability ratios
leverage ratios
6. Multiple Choice
1 minute
1 pt
The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets.
current ratio
working capital
acid test/ quick ratio
asset turnover ratio
7. Multiple Choice
30 seconds
1 pt
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off $1 of current debt.
acid test/ quick ratio
asset turnover ratio
current ratio
inventory turnover
8. Multiple Choice
1 minute
1 pt
Indicates a firm's ability to quickly liquidate assets to pay off current debts.
asset turnover ratio
inventory turnover
debt-to-assets ratio
acid test/ quick ratio
9. Multiple Choice
30 seconds
1 pt
Indicates the number of dollars in sales the firm generates from each dollar it has invested in assets.
asset turnover ratio
acid test/ quick ratio
debt-to-assets ratio
debt-to-equity ratio
10. Multiple Choice
30 seconds
1 pt
The number of times during an operating period that the average inventory was sold.
working capital
return on investment
inventory turnover
debt-to-assets ratio
11. Multiple Choice
30 seconds
1 pt
Indicates how quickly a firm's credit accounts are being collected and is a good measure of how efficiently a firm is managing its accounts receivable.
average collection period
efficiency ratios
working capital
current ratio
12. Multiple Choice
30 seconds
1 pt
Measures to what degree the assets of the firm have been financed with borrowed funds.
debt-to-equity-ratio
liquidity ratio
profitability ratio
debt-to-assets ratio
13. Multiple Choice
30 seconds
1 pt
Compares the total debt of the firm with the owner's equity.
debt-to-assets ratio
debt-to-equity ratio
asset turnover ratio
efficiency ratio
14. Multiple Choice
1 minute
1 pt
The amount of profit generated by the firm in relation to the amount invested by the owners.