Analysis and Interpretation of Accounts

Which of the following is not a current asset?

• Inventory

• Prepaid Insurance

• Fixtures

Current assets MINUS Current liabilities is the

• Current Ratio

• Net Worth

• Working Capital

Current assets DIVIDED BY current liabilities is the

• Current Ratio

• Net Worth Ratio

• Working Capital

The Quick Ratio EXCLUDES which of the following?

• Inventory

• Cash

• Net Profit

The company's working capital is

• 60,000

• 66,000

• 196,000

The company's current ratio is

• 1.0:1

• 2.0:1

• 2.1:1

Comparisons of financial statements highlights the trend of the ________________ of the business.

• Financial position

• Performance

• Profitability

• All of the above

Which of the following statements represents information at a specific point in time?

• The Income Statement and the Balance Sheet

• The Income Statement

• The Balance Sheet

Current ratio is also known as the acid test ratio

• True

• False

Liquidity ratios indicate the company's ability to pay its current liability

• True

• False