Answer the following multiple-choice questions:
Required
a. A ratio that indicates how funds are supplied to a utility is
1. Return on assets.
2. Percent earned on operating property.
3. Operating ratio.
4. Funded debt to operating property.
5. Operating revenue to operating property.
b. A ratio that relates net earnings to the assets primarily intended to generate earnings for a utility is
1. Return on assets.
2. Percent earned on operating property.
3. Operating ratio.
4. Funded debt to operating property.
5. Operating revenue to operating property.
c. For a utility, the ratio that is basically an operating asset turnover ratio is
1. Return on assets.
2. Percent earned on operating property.
3. Operating ratio.
4. Funded debt to operating property.
5. Operating revenue to operating property.
d. A ratio that indicates a measure of operating efficiency for a utility is
1. Operating revenue to operating property.
2. Funded debt to operating property.
3. Operating ratio.
4. Percent earned on operating property.
5. Long-term debt to operating property.
e. For a transportation firm, which ratio gives a measure of the source of funds with which property is obtained?
1. Operating ratio
2. Operating revenue to operating property
3. Long-term debt to operating property
4. Per mile-per person-per ton
5. Return on equity
f. Which ratio is a measure of turnover of operating assets for a transportation firm?
1. Operating ratio
2. Long-term debt to operating property
3. Per mile-per person-per ton
4. Return on investment
5. Operating revenue to operating property
g. Which of these industries does not have a uniform system of accounts?
1. Banks
2. Utilities
3. Transportation
4. Oil and gas
5. 1, 2, and 3
h. Which of the following has a balance sheet similar in format to a manufacturing firm?
1. Banks
2. Insurance companies
3. Regulated utilities
4. 1 and 2
5. None of the above