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Worksheets12 QUIZ 3
Total questions: 15
Worksheet time: 8mins
Commercial papers are mature about 10 months.
TRUE
FALSE
Financial instruments are tools that help a finance manager handle his cash, his short-term operating requirements and long-term business requirements.
TRUE
FALSE
The capacity to pay a loan does not affect one’s credit ratings.
TRUE
FALSE
If a sales decrease and financial leverage increases, we can say with certainty that the profit margin on sales will decreases.
TRUE
FALSE
A high current ratio and quick ratio is the indication that a firm is managing its liquidity position well.
TRUE
FALSE
What is liquidity?
Ability of the business to generate profit
Ability of the business to pay its short-term obligation as they fall due
Ability of the business to pay its long-term liabilities.
Below is the characteristic of preferred stock EXCEPT
Has a voting right
Has no maturity date
Issued by corporations in exchange for units of ownership
What do you call to the money extended to a person or business in exchange in return?
Credit
Debt
Loan
What do you call to the obligation to pay back property or cash borrowed in accordance to an agreement?
Credit
Debt
Loan
Below are the examples of short-term debt EXCEPT?
Treasury bills
Treasury bonds
Treasury notes
Type of security that signifies ownership in a corporation and represent a claim on a part.
(a)
It refers to the value of the assets that the costumer has and plans to use to secure the credit.
(a)
It measures how a business can survive in the long run.
(a)
A long-term debt issued by corporations and matures in forty years.
(a)
What is the liquidity ratio that is also known as working capital?
(a)
