Question 5 1 pts Many analysts like to look at a ratio that shows how profitable a company's operating activities are. Which ratio shows this? O Acid-test ratio O Profit margin O EBIT margin Question 6 1 pts At ABC Co., unit heads develop budgets for their departments that are linked to company performance objectives. Is this top-down or bottom-up budgeting? O Top-down O Bottom-up Question 3 1 pts In most finance systems, what is the time frame that distinguishes short-term liabilities, also known as current liabilities, from long-term liabilities? Short-term liabilities typically have to be paid in a year or less; long-term liabilities take more than a year to repay. O Short-term liabilities typically have to be paid within 18 months; a long-term liability takes more than 18 months to repay. O Short-term liabilities typically must be paid in 6 months or less; long-term liabilities take over 6 months to repay. Question 4 1 pts If the income statement can tell you whether a company is making a profit, what does the cash flow statement tell you? O How efficiently a company is using its assets O Whether a company is turning profits into cash How well a company is managing its liabilities Question 1 1 pts If you want to recognize revenue during the period in which the related sales activity occurred, which accounting method would you use? Accrual accounting O Cash-basis accounting D Question 2 1 pts Which of the following would be considered a cost of goods sold? O Administrative employee salaries O Sales and marketing costs O Rents O Assembly labor costs O Advertising costs