
Test #2 Review
Authored by Nicole Chuchmach
Other
Professional Development
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9 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A current ratio of 2:1 means that an event business has $2 of current liabilities to $1 of current assets
True
False
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Working capital is an indicator of whether a company has enough liquid assets to pay off its upcoming debts. A
True
False
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula for the current ratio?
Current assets/cash
Current liabilities/current assets
Current assets/current liabilities
Fixed Assets/current liabilities
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What account is not included in the quick ratio calculation?
Cash
Inventory
Accounts Receivables
Marketable Securities
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Gross Profit/Net Sales =
Net Profit Margin
What the finance
Current Ratio
Gross Profit Margin
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An increase to debt with no change to equity will mean the debt-to-equity ratio will increase.
True
False
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When completing a vertical analysis of an income statement, net income = 100%
True
False
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