Liquidity ratios measure - Study guides, Class notes & Summaries

Accounting - The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) - Another name for the discretionary financing needed or exte...

Liquidity Ratios - ️️measures of a firm's short-term ability to meet its current obligations Profitability Ratios - ️️measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability) Activity Ratios - ️️Measure of efficiency of a firm's assets Solvency Ratios - ️️Measure of a firm's ability to pay its obligations Inventory Turnover - ️️COGS / avg inventory Receivables Turnover - ️️revenue / av...

Adventis FMC Level 1 MC Practice Questions with Certified Solutions what is the purpose of the income statement? What does it indicate? to show stakeholders if the firm made or lost money during the period being reported it indicates how revenues are transformed into net income define: Revenue the amount charged for the delivery of goods and services define: COGS direct costs of producing revenue define: Operating Expense all other expenses required to run the business what does Operating...

Wall Street Prep Accounting Latest 2023 Graded A+ Liquidity Ratios measures of a firm's short-term ability to meet its current obligations Profitability Ratios measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability) Activity Ratios Measure of efficiency of a firm's assets Solvency Ratios Measure of a firm's ability to pay its obligations Inventory Turnover COGS / avg inventory Receivables Turnover revenue / average ac...

Which of the following is a basic financial statement? correct answers Balance Sheet, Statement of Operations, & Statement of Cash Flows Balance Sheet for a non-profit contains all of the following: correct answers Organization's assets, Organization's liabilities, & Cash Flow Assets correct answers Cash, investments, inventory, and receivables. Liabilities correct answers Financial obligations due within a year Net asset categories correct answers Permanent Temporary Unrestricte...

FSA Test Questions & Answers A firm has a low or negative profit margin. What would be a potential solution? - If the firm has declining sales, the firm should try to generate more sales. Which of the following measures the extent to which the owner's capital (equity) is tied up in non-liquid, permanent, depreciable property? - Fixed assets to net worth If a company begins to collect its receivables slower, its collection period will? - Increase Internal causes are things that neg...

FINA 470 Exam Questions and Answrs which of the following best describes the current ratio? - Ans:-liquidity ratio (ability of current assets to cover current debt) which of the following is not likely to be used to measure a company's liquidity? - Ans:-financial leverage (leverage refers to long-term debt and solvency) which of the following is likely to be used to measure a company's solvency? - Ans:-financial leverage (leverage refers to long-term debt and solvency) which of the ...

BMAL 590 BUSINESS FINANCE EXAM 2 QUESTIONS WITH CORRECT ANSWERS A company's balance sheet shows the value of assets, liabilities, and stockholders' equity CORRECT ANSWER At a specific point in time On a balance sheet, retained earnings are not "unspent cash" because CORRECT ANSWER They have been used to finance the firm's assets For both managers and external financial analysts, ________ is the single most important accounting number found on the income statement CORRECT ANSWER Net i...

goal of financial management maximize stock price, maximize shareholder wealth agency problems managers are supposed to act as agents on behalf of shareholders but own < 100% of the outstanding common stock Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:00 Full screen what makes managers act in shareholders best interest? possibility of promotion threat of being fired threat of hostile takeover SEC rule change exec. pay r...

Wall Street Prep Accounting Exam Questions with All Correct Answers Liquidity Ratios - ANSWER measures of a firm's short-term ability to meet its current obligations Profitability Ratios - ANSWER measures of a firm's profitability relative to its assets (operating efficiency) and to its revenue (operating profitability) Activity Ratios - ANSWER Measure of efficiency of a firm's assets Solvency Ratios - ANSWER Measure of a firm's ability to pay its o...