45. The major tool for measuring the profitcapacity of a firm over a characterized period of time is the A. revenue statement.B. balance sheet.C. statement of cash flows.D. None of the above
46. The ________ does not recurrent continuing operations in any type of means but is sindicate a picture of the total worth of a firm at a offered point in time. A. revenue statementB. balance sheetC. source and also usage of funds statementD. statement of cash flowsE. none of the above
47. The statement of cash inflows and outflows reflects every one of the following, except: A. just how the firm"s balance sheet readjusted from one duration to another.B. exactly how funds from operations were offered to finance the company"s assets.C. exactly how the firm has actually matched short-term and long-term sources of funds with temporary and also irreversible provides of funds.D. the firm"s expense of brand-new borrowing.
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48. Cash inflows aincrease from _____ assets, ________ liabilities, and also ___________ stockholders" equity. A. increasing; increasing; decreasingB. increasing; decreasing; decreasingC. decreasing; increasing; increasingD. decreasing; increasing; decreasing
49. Which of the adhering to is NOT a crucial proportion in the prediction of bankruptcy, as developed by Edward Altman? A. Debt-to-equity ratioB. Current ratioC. Retained revenue as a percent of full assetsD. EBIT to full assets
50. ________________ ratios measure the capacity of a firm to earn an sufficient rerevolve on sales, full assets, and also invested funding. A. Asset-utilizationB. LiquidityC. ProfitabilityD. Debt-utilizationE. Price
51. The method of calculating return on assets which highlights the prestige of sales, profit margin, and also asset turnover is known as: A. the sales method.B. DuPont analysis.C. the Altguy version.D. the Gordon model.E. the Rerevolve on Assets model.
52. Asset-utilization ratios meacertain all of the complying with except: A. efficiency of fixed assets in terms of sales.B. the partnership of sales on the income statement to miscellaneous assets on the balance sheet.C. how many kind of times per year the inventory is offered and also accounts receivable collected.D. the firm"s ability to pay off short-term responsibilities as they come due.
53. The primary purpose of the liquidity ratios is to determine: A. how a lot working resources is tied up in inventory.B. the relative level of short-lived debt.C. exactly how well a firm is able to pay off momentary obligations.D. More than among the above
54. Which of the complying with statements about liquidity ratios is true? A. The better the current proportion, the even more most likely a firm is able to pay its momentary obligationsB. The reduced the quick ratio family member to the existing proportion, the safer a firm is in regards to liquidityC. The reduced the existing proportion, the even more likely a firm is able to pay its short-lived obligationsD. Relatively high present ratios are normally a sign of effective working capital management
55. The ________ ratios assist recognize the degree of financial risk and income volatility existing in a firm. A. profitabilityB. asset-utilizationC. liquidityD. debt-utilizationE. price
56. Which of the following statements is(are) true? A. Debt-to-equity and debt-to-ascollection ratios meacertain resources structure and vary widely among industriesB. Debt-utilization ratios alone execute not measure a firm"s capacity to meet its cash obligationsC. DuPont analysis considers the influence of debt on the profitcapability of the firmD. Two of the over are true
57. ___________ ratios meacertain the influence of external market pressures on the internal performance of a firm. A. PriceB. ProfitabilityC. LiquidityD. Asset-utilizationE. Debt-utilization
58. A high payout ratio indicates that: A. a firm is investing greatly in plant and also devices.B. a firm has actually high present responsibilities.C. the firm is most likely in the mature phase of its life cycle and also does not have many expansion methods accessible.D. the firm is more than likely in Stage II of its life cycle.E. the firm most likely has actually also many type of highly profitable investment avenues.
C. the firm is probably in the mature phase of its life cycle and also does not have many type of growth avenues accessible.
59. Ratio analysis, which compares a company to an market, is facility because: A. dependable industry data is not readily available.B. the audit conventions between suppliers may be disequivalent.C. big service providers are diversified throughout several industries.D. More than one of the above
60. __________ analysis is the process of studying a series of ratios for a company and/or market over time. A. DuPontB. TrendC. Usual sizeD. CriticalE. All of the above
61. In an inflationary economy, many kind of firms usage the ________ approach of inventory valuation to mitigate distortion of profits. A. Current costB. LIFOC. FIFOD. LILOE. Median cost
62. Replacement cost accounting __________ income however __________ assets and ____________ the debt-to-assets ratio. A. reduces; increases; lowersB. lowers; increases; increasesC. increases; decreases; lowersD. none of the above
63. Corpoprice pension funds pose a threat to future earnings of the agency bereason A. the agency is liable for all payments.B. unfunded pensions will certainly be paid from future revenue.C. the firm might be unable to reinvest in brand-new assets.D. All of the above
64. The statement of cash flows tells us A. what the accounting profit or loss is.B. exactly how cash was developed.C. the actual profit or loss.D. the actual value of assets and liabilities.E. the source and also use of net earnings.
65. An analyst have the right to judge a company"s level of debt by comparing these ratios: A. return-on-equity to complete debt-to-assetsB. return-on-equity to complete asset turnoverC. return-on-equity to debt turnoverD. return-on-equity to return-on-assetsE. return-on-equity to present ratio
66. A stock is an excellent buy once the worth of which of these ratios is low, compared to a market index or company history? A. Price-to-book-valueB. Price-to-earningsC. Dividfinish yieldD. All of the above
67. Which of the adhering to is not an Asset-utilization ratio: A. Receivable turnoverB. Fixed-ascollection turnoverC. Rapid ratioD. Total assets turnoverE. All of the over are Asset-utilization ratios
68. The major tool that shows what the firm owns, and how these assets are financed, in the develop of liabilities or ownership interemainder is: A. the balance sheet.B. the statement of cash flows.C. the earnings statement.D. the basic ledger.
69. The main sections of a statement of cash flows are: A. cash flows from investing, operating, and also financing activities.B. cash flows from investing and operating tasks.C. cash flows from investing, financing, and accounting tasks.D. cash flows from investing, operating, financing, and also audit activities.
70. Financial ratios are used to weigh and also evaluate: A. the operating performance and resources framework of the firm.B. which stocks are the gold mine stocks when investing in the market.C. which stocks are around to file for bankruptcy.D. the net existing value of the agency.E. which companies manage their inventories successfully.
71. The form of proportion that enables the analyst to measure the capability of the firm to earn an sufficient return on sales, total assets, and also invested capital is: A. liquidity ratios.B. profitcapability ratios.C. asset-utilization ratios.D. debt-utilization ratios.E. price ratios.
72. Which of the adhering to is a great instance of alters in accountancy principles? A. A adjust in revenue per share, as a result of an increase in the variety of shares of common stockB. A readjust in revenue, due to a change for post-retirement benefitsC. A change in income prior to taxes, because of a readjust in interior rates on debtD. None of the above
73. When a company repurchases shares of their own prevalent stock, A. the revenue per share will certainly rise.B. the dividends paid out in complete will certainly decrease.C. the income per share development price will increase.D. All of the above will happen
74. You would discover the payment of dividends in the statement of cash circulation under: A. cash flows from operating tasks.B. cash flows from investing activities.C. cash flows from financing tasks.D. cash flows from purchasing tasks.E. cash flows from marketing activities.
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75. You would suppose to uncover depreciation and amortized costs in the statement of cash flows under: A. cash flows from operating tasks.B. cash flows from investing activities.C. cash flows from financing tasks.D. cash flows from purchasing tasks.
76. Price Printing Co. had actually sales of $10 million, operating earnings of $3 million, after-taxes income of $1 million, assets of $8 million, stockholders" equity of $5 million, and a complete debt of $4 million. What is Price Printing Company"s rerotate on assets? A. 37.5%B. 12.5%C. 30.0%D. 25.0%E. 20.0%
77. Price Printing Co. had sales of $10 million, operating income of $3 million, after-taxes income of $1 million, assets of $8 million, stockholders" equity of $5 million, and a full debt of $3 million. What is Price Printing Company"s rerotate on equity? A. 37.5%B. 10.0%C. 20.0%D. 60.0%E. 12.5%
78. Price Printing Co. had sales of $10 million, operating earnings of $3 million, after-taxation income of $1 million, assets of $8 million, stockholders" equity of $5 million, and also a total debt of $3 million. What is Price Printing Company"s profit margin? A. 10.0%B. 20.0%C. 30.0%D. 33.0%E. 90.0%
79. Price Printing Co. had actually sales of $10 million, operating income of $3 million, after-tax income of $1 million, assets of $8 million, stockholders" equity of $5 million, and a complete debt of $3 million. What is Price Printing Company"s ascollection turnover? A. .50xB. 1.25xC. 2.50xD. 3.33xE. .80x
80. Price Printing Co. had sales of $10 million, operating earnings of $3 million, after-taxation income of $1 million, assets of $8 million, stockholders" equity of $5 million, and a total debt of $3 million. If we measure Price"s financial leverage, we would a lot of likely usage which of the adhering to ratios from chapter 8? A. Debt-to-equity (60%) and also debt-to-sales (30%)B. Debt-to-equity (60%) and also equity-to-assets (62.5%)C. Debt-to-equity (60%) and debt-to-assets (37.5%)D. Equity-to-assets (62.5%) and after-taxation income-to-debt (33.3%)