TCDN C4

Which of the following statements is true?

• Systematic risk is also known as diversifiable risk

• Systematic risk is a type of risk that can only affect one or some industries

• Unsystematic risk is also called market risk

• Unsystematic risk can be reduced by diversification

Two measures of asset efficiency are:

• Average collection period and debt ratio

• Days in inventory and average collection period

• Total asset turnover and current ratio

• Working capital turnover and return on assets

Which of the following is not a current asset?

• Inventory

• Prepaid Insurance

• Fixtures

Current assets MINUS current liabilities is the

• Current Ratio

• Net Worth

• Net Working Capital

Current assets DIVIDED BY current liabilities is the

• Current Ratio

• Quick Ratio

• Working Capital Ratio

The quick ratio EXCLUDES which of the following?

• Accounts Receivable

• Inventory

• Cash

Gross margin is added to cost of sold goods to calculate:

• Revenue

• selling price

• unit price

• bundle price

______a snapshot of the financial condition of the firm at a particular time.

• The balance sheet provides

• The T-account provides

• The Leger provides

if the interest rate on debt is higher than BEP, then a firm will -- by increasing the use of debt in the capital structure.

• increase the ROE

• not change the ROE

• decrease the ROE

• change the ROE in an indeterminable manner

• noneoftheabove

A measure of asset utilization is

• sales divided by working capital (Days working capital)

• return on total assets

• return on equity capital

• operating profit divided by sales

• none of the above