A. Not shown on timeline
B. Shown on timeline
C. Multiplied on timeline
D. Divided on timeline
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.
A. Return ratios
B. Market value ratios
C. Marginal ratios
D. Equity ratios
A. external rate of return
B. internal rate of return
C. positive rate of return
D. negative rate of return
Which of the following ratios are intended to address the firm’s financial leverage?
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Asset Management Ratios
D. Profitability Ratios
These ratios are intended to address the firm’s long-run ability to meet its obligations, or its financial leverage
A. Bancus
B. Banque
C. Bench
D. All of the above