AGBE 4313 Exam 1 Questions & Answers 2024/2025
Long term creditors are likely to be least interested in a firms - ANSWERSLiquidity ratios
If an analyst wanted to compute a rough measure of a firms financial risk, which of the following types of ratios would be preferred - ANSWERSDebt ratios...
Long term creditors are likely to be least interested in a firms - ANSWERSLiquidity ratios
If an analyst wanted to compute a rough measure of a firms financial risk, which of the following types of
ratios would be preferred - ANSWERSDebt ratios
A high inventory turnover ratio may be indicative of: - ANSWERSefficient inventory management
Firm A has a total asset turnover ratio of 5, a net profit margin of 2 percent, and return on equity of 15
percent. Its return on assets is: - ANSWERS10 percent
Firm B has total sales of $3 million and total assets of $1 million dollars, a net profit margin of 2 percent,
and return on equity of 10 %. Its return on assets is: - ANSWERS6 percent
An analysis of percentage financial statements where all balance sheet items are divided by
____________ is known as - ANSWERStotal assets; a common-soze analysis
An analysis of percentage financial statements where all balance sheet or income statement figures for a
base year equal 100.0 and subsequent financial statement items are expressed as percentages of their
values in the base year is known as: - ANSWERSan index analysis
Which of the following would improve the current ratio? - ANSWERSIssue long-term debt to buy
inventory
A firm collects 80% of its credit sales in 30 days and the remainder in 60 days. The average collection
period is - ANSWERS36 days
Profitability varies directly with - ANSWERSrisk
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