3. Sensitivity analysis is one of the methods for examining the ability of an organization to handle changes in the future. Which financial statement is required for this type of analysis?

Multiple Choice

• A balance sheet
• An income statement
• A current cash flow statement
• All of these

11. In the context of leverage ratios, the figure that estimates how capable a firm is of servicing the current interest owed on its debts is referred to as _____.

Multiple Choice

• accounts payable
• debt-to-assets
• debt-to-equity
• times interest earned

12. In the context of analyzing the health, activities, and performance of a business, which of the following is a nonfinancial method of analysis?

Multiple Choice

• Dividend discount model
• Horizontal analysis
• Short surveys
• Ratio analysis

20. In the context of ratio analysis, the quick ratio measures

Multiple Choice

• the current assets of a firm, excluding its current inventory, relative to its current liabilities.
• the total assets of a firm, including equity investments and accounts receivable.
• the cash that can be quickly gained by selling a firm's current inventory at hugely discounted rates.
• the overall profits of a firm measured across a fixed period of time.