Question $1$

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The ratio measures how many times a company converts its receivables into cash each year.

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Accounts receivable turnover

Average collection period

Average sale period

Inventory turnover

Question $2$

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Current ratio is

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Liquidity ratio

Profitability ratio

Solvency ratio

Activity ratio

Question $3$

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$-------$ measure indicates how much income was earned for each share of common stock outstanding.

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EPS

ROA

ROE

ROS

Question $4$

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Short$-$term creditors are usually most interested in evaluating

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solvency.

liquidity

profitability

marketability

Question $5$

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$--------------$Measures the speed with which Various Accounts are converted into sales or cash$-$inflows and outflows

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Activity ratios

Profitability ratios

Market growth ratios

Debt Ratios

Question $6$

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Asset turnover is

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Liquidity ratio

Profitability ratio

Solvency ratio

Activity ratio

Question $7$

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Earnings per share is

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Liquidity ratio

Profitability ratio

Solvency ratio

Activity ratio

Question $8$

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Debt to Equity ratio is

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Liquidity ratio

Profitability ratio

Solvency ratio

Activity ratio

Question $9$

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$---------$ measure indicates how well the company used the owners$$ equity to earn income.

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ROA

ROS

ROE

EPS

Question $10$

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A liquidity ratio measures the

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income or operating success of an enterprise over a period of time.

ability of the enterprise to survive over a long period of time.

short$-$term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.

number of times interest is earned.

Question $11$

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Long$-$term creditors are usually most interested in evaluating

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liquidity and solvency.

solvency and marketability.

liquidity and profitability.

profitability and solvency.

Question $12$

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$-----------------$indicates the efficiency with which the firms use its assets to generate sales.

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Asset Turnover

Account Receivable Turnover

Account payable Turnover

Average collection period

Question $13$

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$-----------------$Measures the percentage of each sales dollar remaining after all the costs and expenses other than interest, taxes and preferred stock dividends are deducted.

The $$pure profit$$ earned each sales dollar.

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Gross profit margin

net profit margin

operating profit margin

EPS

Question $14$

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The ratio measures a company$$s ability to meet obligations without having to liquidate inventory

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Acid$-$test $($quick$)$ ratio.

Working capital.

Current ratio.

Question $15$

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Price$-$earnings ratio is

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Liquidity ratio

Profitability ratio

Activity ratio

solvency rati