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- 1. Multiple ChoiceFinancial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.liquidity ratiosefficiency ratiosleverage ratiosprofitability ratios
- 2. Multiple Choice
Financial ratios that tell how much of each rand of sales, assets, and owner's equity resulted in net profit.
liquidity ratios
efficiency ratios
profitability ratios
leverage ratios
- 3. Multiple ChoiceThe 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 ratioworking capitalacid test/ quick ratioasset turnover ratio
- 4. Multiple Choice
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off R1 of current debt.
acid test/ quick ratio
asset turnover ratio
current ratio
inventory turnover
- 5. Multiple ChoiceIndicates a firm's ability to quickly liquidate assets to pay off current debts.asset turnover ratioinventory turnoverdebt-to-assets ratioacid test/ quick ratio
- 6. Multiple ChoiceThe amount of profit generated by the firm in relation to the amount invested by the owners.return on investmentratioworking capitalinventory turnover
- 7. Multiple ChoiceThe financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:Balance SheetStatement of Retained EarningsStatement of Cash FlowsIncome Statement
- 8. Multiple ChoiceIf total expenses exceed total revenue, a net loss is reportedTrueFalse
- 9. Multiple Choice
Examples may include salaries, utilities, rent, insurance, and office supplies.
Revenue
Expenses
Net Income
Net Loss
- 10. Multiple ChoiceThis document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.Income StatementBalance Sheet
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