1. Which of the following is not an asset utilization ratio? (A) Inventory turnover (B) Return on...
Question:
1. Which of the following is not an asset utilization ratio?
(A) Inventory turnover
(B) Return on assets
(C) Fixed asset turnover
(D) Average collection period
2. If ABC?s sales are $1,000,000, while accounts receivable is $100,000, inventory is $45,000, and fixed assets are $132,000, what is ABC?s fixed asset turnover?
(A) 7.58
(B) 10.00
(C) 0.13
(D) 22.22
3. If XYZ?s receivables turnover is 4x, what does that mean?
(A) XYZ?s total sales are rotated four times a year.
(B) XYZ has a really good receivables turnover rate.
(C) XYZ is able to collect its receivables every 90 days, or 4 times a year.
(D) XYZ generates four times as much sales through receivables than sales through cash.
4. A decreasing average receivables collection period could be associated with
(A) Increasing sales.
(B) Decreasing sales.
(C) Decreasing accounts receivable.
(D) Increasing sales and decreasing accounts receivable.
5. An increasing average receivables collection period indicates
(A) The firm is generating more income.
(B) Accounts receivable are going down.
(C) The company is becoming more efficient in its collection policy.
(D) The company is becoming less efficient in its collection policy.
6. A firm has operating profit of $210,000 after deducting fixed lease payments of $30,000. The fixed interest expense is $50,000. What is the firm's fixed charge coverage ratio?
(A) 6.00x
(B) 2.33x
(C) 2.00x
(D )3.00x
7.
Refer to the tables above. Compute Megaframe's after-tax profit margin.
(A)5.7%
(B)13.2%
(C)15.4%
(D)18.9%
8.
Refer to the tables above. Megaframe's quick ratio is ____.
(A)1.9:1
(B)1:1
(C)1.8:1
(D)12:1
9.
Refer to the tables above. What is Megaframe Computer's total asset turnover?
(A)7.58x
(B)3.6x
(C)2x
(D)1.94x
10.
Refer to the tables above. Compute Tew's after-tax profit margin
(A)42.0%
(B)27.3%
(C)59.4%
(D)None of the options
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain