A. Foreign trade
B. Foreign trade deficits
C. Foreign trade surplus
D. Trade surplus
A. Low dividends paid
B. High risk prospect
C. High growth prospect
D. High marginal rate
A. High beta, less risky
B. Low beta, more risky
C. High beta, more risky
D. Low beta, less risky
Income that is saved and not Invested is known as Deposit.
A. Free cash flow
B. Retained cash flow
C. Net cash flow
D. Financing cash flow
If a firm uses cash to purchase inventory, its quick ratio will?
A. Increase
B. Decrease
C. Remain unaffected
D. Become zero
When inventory is purchased for cash, the cash is converted into inventories and there is no effect on net current assets. The current assets remain the same as before the purchase of inventory the current ratio will not be changed. Quick ratio, however, will be reduced if the cash is converted into inventories because while computing quick ratio inventories are not added but cash is included in quick assets. (Quick assets / current liab.) Quick assets = current assets-inventories.