WGU ACCOUNTING C213 (CHAPTER 6 QUIZ -
Part2) questions and right solutions
Borrowing that allows a company to purchase more assets than its stockholders are able to pay for is
o Efficiency
o Liquidity
o Profitability
o Leverage ANS - Leverage
The following data came from the financial statements of the Cheviot Company:
Revenue: $1,800,000
Assets: $1,200,000
Expenses: 1,200,000
Liabilities: 200,000
Net income: 600,000
Equity: 1,000,000
Compute the asset turnover (round to two decimal places).
o 1.25
o 1.40
o 1.60
o 1.50 ANS - Asset turnover:
$1,800,000 / $1,200,000
= 1.50
Part2) questions and right solutions
Borrowing that allows a company to purchase more assets than its stockholders are able to pay for is
o Efficiency
o Liquidity
o Profitability
o Leverage ANS - Leverage
The following data came from the financial statements of the Cheviot Company:
Revenue: $1,800,000
Assets: $1,200,000
Expenses: 1,200,000
Liabilities: 200,000
Net income: 600,000
Equity: 1,000,000
Compute the asset turnover (round to two decimal places).
o 1.25
o 1.40
o 1.60
o 1.50 ANS - Asset turnover:
$1,800,000 / $1,200,000
= 1.50
