CMA 1.1 - 1.2 (16.12.2024)

What does the current ratio measure?

• Solvency
• Liquidity
• Leverage
• Profitability

What is the formula for the current ratio?

• Current assets / Total assets
• Current liabilities / Total liabilities
• Current assets / Current liabilities
• Current liabilities / Current assets

Which ratio excludes inventories and prepaids from the numerator?

• Current ratio
• Quick ratio
• Cash ratio
• Debt ratio

What is the quick ratio also known as?

• Acid-test ratio
• Liquidity ratio
• Solvency ratio
• Leverage ratio

What does a low current ratio indicate?

• High profitability
• Possible solvency problem
• High liquidity
• High leverage

What is the most conservative measure of liquidity?

• Current ratio
• Quick ratio
• Cash ratio
• Net working capital ratio

What does the cash ratio measure?

• Solvency
• Liquidity
• Leverage
• Profitability

What is the formula for the cash ratio?

• (Cash + Marketable securities) / Current liabilities
• Current assets / Current liabilities
• Current liabilities / Current assets
• (Cash + Receivables) / Current liabilities

What does the net working capital ratio indicate?

• Long-term solvency
• Short-term liquidity
• Profitability
• Asset turnover

What is the formula for net working capital?

• Current assets - Current liabilities
• Total assets - Total liabilities
• Current liabilities - Current assets
• Total liabilities - Total assets