What do liquidity ratios measure?

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Quiz
•
Mathematics
•
University
•
Hard
Laila Langit
FREE Resource
7 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Current Assets ÷ ____________
(Cash + ___________ + A/R) ÷ Current Liabilities
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What do activity ratios measure?
Net Credit Sales ÷ ____________________________
(365 days ÷ A/R turnover)
Cost of Goods Sold ÷ __________________________
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What do profitability ratios measure?
Net Income ÷ _____________
Net Income ÷ ____________
Net Income ÷ Average _______________
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What do solvency ratios measure?
Total Liabilities ÷ ____________________
Operating Income ÷ ____________________
Total Equity ÷ _________________________
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
WHICH OF THE FOLLOWING IS NOT A MEASURE OF ASSET UTILIZATION?
INVENTORY TURNOVER
AVERAGE AR COLLECTION PERIOD
FIXED ASSET TURNOVER
DEBT TO TOTAL ASSETS
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
wHAT FINANCIAL ANALYSIS TECHNIQUE WOULD IMPLY BENCHMARKING WITH OTHER FIRMS?
HORIZONTAL ANALYSIS
VERTICAL ANALYSIS
CROSS-SECTIONAL ANALYSIS
RATIO ANALYSIS
7.
MULTIPLE SELECT QUESTION
30 sec • 1 pt
Match the following ratios to their correct use-case:
Measures how much investors are willing to pay per peso of earnings. It reflects market expectations about a company’s future performance.
Measures the return on investment in the form of dividends. It shows how much cash a company returns to shareholders relative to its share price.
Indicates the asset value per share that stockholders would theoretically receive if the company were liquidated.
Measures how efficiently a company uses its assets to generate sales. A higher ratio means better efficiency.
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