Chapter 9 Lesson

Chapter 9 Lesson

By Susana Bernhardt

Multiple Choice

Which of the following is not a Financial Statement?

• Balance Sheet

• Income Statement

• Trial Balance

Multiple Choice

Which one of the following does the Balance Sheet not show?

• what the business owns

• what the business is worth

• what the business owes

• The Revenues

Multiple Choice

The process of evaluating various amounts in the financial statements is called

• the trial balance

• ratio analysis

• the work sheet

• the Balance Sheet

Multiple Choice

A ratio used to find out if a company is being profitable is called

• liquidity ratio

• profitability ratio

• ratio analysis

Multiple Choice

A ratio that represents the amount of sales dollars that becomes profit is called

• return on sales ratio

• liquidity ratio

• profitability ratio

Multiple Choice

Assets that are used up or converted to cash are called

• Fixed Assets

• Current Assets

Multiple Choice

Debts of the business that must be paid within an accounting period are called

• Long-Term Liabilities

• Current Liabilities

Multiple Choice

An example of a current liability is

• current assets

• fixed assets

• accounts payable

Multiple Choice

The amount by which current assets are greater than current liabilities is called

• Fixed Asset

• Current Asset

• Accounts payable

• Working Capital

Multiple Choice

The ratio that shows that a business can pay its debts when they come due is called

• ratio analysis

• liquidity ratio

• profitability ratio

Multiple Choice

The current ratio measures whether a business has enough money to pay debts and it is measured by dividing

• current assets by current liabilities

• fixed assets by long-term liabilities

Multiple Choice

A measure of the short-term assets and the current assets is called

• profitability ratio

• liquidity ratio

• quick ratio