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AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+$18.79
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AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
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Course
AU 60
Institution
AU 60
AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
AU 60 FINAL EXAM 2024-2025 ACTUAL
EXAM 2 VERSIONS AND PRACTICE
QUESTIONS EXAM COMPLETE 600
QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
VERSION A
When calculating the acid-test (quick) ratio, which
one of the following groups of assets is measured
against current liabilities?
Choose one answer.
A. Cash, marketable securities, and accounts
receivable
B. Total current assets, less cash
,C. Cash, accounts receivable, and inventory
D. Total assets, less inventory - ....ANSWER...A. Cash,
marketable securities, and accounts receivable
When calculating the acid-test (quick) ratio, cash,
marketable securities, and accounts receivable are
measured against current liabilities.
An underwriter is attempting to conduct ratio
analysis on a company. The underwriter notices that
the company has $3 million in total assets, $1 million
in current assets, $2 million in total liabilities, and $1
million in current liabilities. Which one of the
following conclusions can the underwriter reach by
calculating the company's debt-to-assets ratio?
Choose one answer.
A. The company's assets are financed mostly
through shareholder's equity.
B. The company has adequate working capital.
,C. The company's assets are financed mostly
through debt.
D. The company is very profitable. - ....ANSWER...C.
The company's assets are financed mostly through
debt.
Correct. Debt-to-assets ratio = Total liabilities ÷ total
assets. $2 million ÷ $3 million = .667. A ration over .5
indicates financing mostly by debt. The company's
assets are financed mostly through debt.
Which one of the following is true regarding ratio
analysis?
Choose one answer.
A. Ratio analysis can be used to both analyze single
companies and make inter-company comparisons.
B. Underwriters should only look into ratio results
that are below the industry average or benchmark.
C. Ratio analysis is broken down into two main
categories: profitability ratios and efficiency ratios.
, D. Ratio analysis does not require any benchmarks
or baselines. - ....ANSWER...A. Ratio analysis can be
used to both analyze single companies and make
inter-company comparisons.
Correct. Ratio analysis can be used to both analyze
single companies and make inter-company
comparisons.
An underwriter is conducting ratio analysis and
notices that a company has $1.5 million in long-term
debt, $3 million in shareholder's equity, and $5
million in assets. Which one of the following
statements is true based on the company's debt to
equity ratio?
Choose one answer.
A. The debt to equity ratio is .30 and the company is
mostly financed by equity.
B. The debt to equity ratio is .50 and the company is
equally funded by long term debt and equity.
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