Units 1 and 2 REVIEW

Which one of the following is not a real cash expense?

• Worker's salaries

• Raw materials

• Research and development

• Depreciation and amortization

Accounts payable are...

• Current Liabilities

• Current Assets

• Long-term Assets

• Long-term Liabilities

Which one of the following is a deduction for long-term assets?

• Accounts Receivable

• Taxes Payable

• Accounts Payable

• Depreciation and Amortization

What financial statement shows what the company owns and owes at a particular point in time?

• Balance sheet

• Income Statement

• Cash Flow Statement

• None of them

A patent that a company owns would be listed as...

• Current Asset

• Current Liability

• Long Term Asset

• Long Term Liability

When the value of an asset suffers a great and sudden loss in value, that asset is subject to impairment.

• True

• False

Amortization is for tangible assets.

• True

• False

If the P/E ratio of a company is really high, it can mean that...

• The company is undervalued

• The company is expected to grow in the near future

• The company is less volatile

• It means that the company is having great losses

Which ratio tells you how much money is generated from all the invested capital in the company?

• Return on Assets (ROA)

• Return on Equity (ROE)

• Asset Turnover

• Return on Sales

What would be the inventory turnover?

• 8

• 5

• 13.33

• 8.33