Ratio Analysis

Which group of ratios can be used to analyse a business' ability to meet its short-term obligations?

• Activity Ratios

• Liquidity Ratios

• Profitability Ratios

• Solvency Ratios

Which group of ratios will a bank use in determining to provide a firm with long-term financing?

• Activity Ratios

• Liquidity Ratios

• Profitability Ratios

• Solvency Ratios

What is the value of closing inventory?

• $30 800

• $31 500

• $36 750

• $38 500

The value of average stock?

• $31 500

• $36 750

• $38 500

• $56 000

The partnerships stock turnover is

• 2.91 times

• 3.05 times

• 3.81 times

• 3.63 times

What is the accounts receivable days for the partnership?

• 14 days

• 21 days

• 57 days

• 85 days

What is the accounts payable days for the partnership?

• 14 days

• 21 days

• 43 days

• 64 days

The ratio that measures the firm's ability to cover its short-term obligations is called the

• Acid Test

• Quick Ratio

• Liquidity Ratio

• Current Ratio

The ratio that measures the firm's ability to pay its short-term creditors should the demand payment is called the

• Current Ratio

• Quick Ratio

• Liquidity Ratio

• Return on Investment

What is the corporation's current ratio?

• 1.51:1

• 1.68:1

• 1.81:1

• 2.35:1