Question

Multiple Choice Questions
1. Which of the following types of analysis compares one corporation to another corporation and to industry averages?
a. Cross sectional analysis
b. Time series analysis
c. timetable analysis
d. Company analysis
2. Which of the following types of analysis is particularly useful for trend analysis?
a. Vertical analysis
b. Timetable analysis
c. Trend-setting analysis
d. Horizontal analysis
3. Vertical analysis expresses each financial statement line item as a percent of:
a. The average statement amount
b. The smallest statement amount
c. The largest statement amount
d. The mean statement amount
4. Horizontal analysis expresses each financial statement line item as a percent of:
a. Net income
b. Total assets
c. Base year
d. Stockholders’ equity
5. How is the current ratio calculated?
a. Current Assets ÷ Current Liabilities
b. (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities
c. (Cash + Marketable Securities) ÷ Current Liabilities
d. Cash Flows from Operating Activities ÷ Current Liabilities
6. How is the cash ratio calculated?
a. Current Assets ÷ Current Liabilities
b. (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities
c. (Cash + Marketable Securities) ÷ Current Liabilities
d. Cash Flows from Operating Activities ÷ Current Liabilities
7. A firm’s quick ratio is typically computed as follows:
a. Total Liabilities = Total Assets
b. (Cash + Short-Term Investments + Receivables) ÷ Current Liabilities
c. Current Liabilities ÷ Current Assets
d. Current Assets ÷ Current Liabilities
8 What ratio is used to measure a firm’s liquidity?
a. Debt ratio
b. Asset turnover
c. Current ratio
d. Return on equity


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  • CreatedSeptember 22, 2015
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