_____ 1.) __________ are often described as the bottom line number on the income statement. A.) Revenues B.) Current assets C.) Earnings D.) None of the above _____ 2.) Which of the following is not a typical type of bond risk? A.) Market price risk B.) Credit risk C.) Reinvestment risk D.) None of the above

_____ 3.) Compared to the others, __________ make up the largest part of the overall bond market. A.) corporate bonds B.) Treasury notes and bonds C.) municipal bonds D.) mortgage-backed securities

_____ 4.) The __________ is the liquidity ratio that considers all current assets. A.) quick ratio B.) cash ratio C.) current ratio

_____ 5.) If assets last longer than their depreciable life, depreciation is initially __________. A.) overestimated B.) underestimated C.) unaffected

_____ 6.) Which of the following is not a typical money market component? A.) Eurodollars B.) Certificates of Deposit (CDs) C.) Treasury bonds D.) Commercial paper E.) None of the above

_____ 7.) __________ are sometimes called turnover ratios since they often compare data from both the income statement and the balance sheet. A.) Activity ratios B.) Liquidity ratios C.) Solvency ratios D.) Profitability ratios

_____ 8.) Which of the following are not based on the accrual method of accounting? A.) The income statement B.) The balance sheet C.) The statement of cash flows D.) A and B E.) B and C F.) A and C G.) All of the above

_____ 9.) __________ are some of the most widely used financial ratios, especially by creditors. A.) Activity ratios B.) Liquidity ratios C.) Solvency ratios D.) Profitability ratios

_____ 10.) Which of the following is not a typical category on an income statement? A.) Net income B.) Revenue C.) Shareholders equity D.) Gross income E.) Operating income

_____ 11.) EBITDA __________. A.) is a proxy for depreciation generated B.) includes depreciation and interest expenses C.) is not popular for capital-intensive companies D.) provides a measure of earnings that are available for debt payments

_____ 12.) The net profit margin is calculated by dividing __________ by __________. A.) gross income, net sales B.) net income, net revenue C.) net sales, expenses D.) None of the above