Test #2 Review

Test #2 Review

Professional Development

9 Qs

quiz-placeholder

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Test #2 Review

Test #2 Review

Assessment

Quiz

Other

Professional Development

Practice Problem

Medium

Created by

Nicole Chuchmach

Used 1+ times

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9 questions

Show all answers

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

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1:1 is the benchmark for the current ratio?

True

False

9.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If current assets = $10,000 and current liabilities = $20,000 the current ratio is:

2:1

1:0.5

0.5:1

1.05:1