Question 11

Free cash flow may be calculated by taking a firm's operating cash flow and subtracting the period's capital expenditures and _____________________________ .

Group of answer choices

current assets

changes in net working capital

current liabilities

cash balance

Question 12

The tax rate applicable to the last dollar of a person's income is called.

Group of answer choices

average tax rate

total tax rate

marginal tax rate

aggregate tax rate

Question 13

Depreciation does not play an important role in tax rate calculations.

Group of answer choices

True

False

Question 14

A current ratio of 1.3 suggests that a company is liquid.

Group of answer choices

True

False

Question 15

A current ratio of 33.1 may cause a financial analyst to be suspect of a company's financial management.

Group of answer choices

True

False

Question 16

If a company has a current ratio of 1.0 and a quick ratio of 1.0, what is likely to be missing.

Group of answer choices

accounts receivable

accounts payable

accruals

inventory

Question 17

Home Depot may have a high inventory turnover ratio for the opposite reason that AutoZone has a low inventory turnover ratio.

Group of answer choices

True

False

Question 18

A days sales outstanding ratio of 30 suggests a company collects its accounts receivable approximately once per month.

Group of answer choices

True

False

Question 19

The asset turnover ratio ratio connects the income statement and the balance sheet.

Group of answer choices

True

False

Question 20

The debt to total capital ratio illustrates how much debt a company holds on its books while the TIE ratio shows if its debt is affordable.

Group of answer choices

True

False