On average, the returns on IPO dates are ____(i)____ and the market reaction to SEOs announcement is ____(ii)____ .

(i) (ii)

A) Positive Negative.

B) Negative Positive.

C) Positive Positive.

D) Negative Negative.

If the balance sheet of a firm indicates that total assets exceed long-term liabilities plus shareholders' equity, then the firm has _______ .

A) no retained earnings.

B) cash dividends.

C) no accumulated depreciation.

D) number of shares outstanding.

E) current liabilities.

Generally speaking, which of the following is the basic calculation used to analyze an income statement:

A) Assets minus liabilities

B) Revenue plus sales.

C) Revenue minus sales.

D) Sales minus expense

E) Revenue minus liabilities

TSLA sells $2 billion marketable securities and use the money to buy inventories. What will happen to its quick ratio?

A) Quick ratio will increase.

B) Quick ratio will not change.

C) Quick ratio will decrease.