ETS MFT BUSINESS EXAM NEWEST 2024 ACTUAL EXAM COMPLETE QUESTIONS WITH CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

Spot Exchange Rate - ANSWERSThe rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency. Interest-rate Parity - ANSWERSA theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. Liquidity Ratios - ANSWERSDo we have enough cash to meet our bills? Provide info on a firms ability to meet its short-term financial obligations. Also known as "current ratio" = current assets/current liabilities Financial Leverage Ratios - ANSWERSProvide an indication of long-term solvency of the firm: debt ratio, debt-to-equity ratio, and interest coverage. Debt Ratio - ANSWERSTotal Debt/Total Assets Debt-to-equity Ratio - ANSWERSTotal Debt/Total Equity Asset Turnover Ratios - ANSWERSProvide information on how efficiently a firm is utilizing its assets Profitability Ratios - ANSWERSOffers several different ways to measure how successful a firm is at generating profits. Inventory Valuation Methods - ANSWERSMethods of valuing inventory: 1) FIFO 2) LIFO 3) Weighted Average FIFO - ANSWERSThe first inventories bought are the first ones to be sold, and that inventories bought later are sold later. LIFO - ANSWERSLast in, first out: the most recently produced items are recorded as sold first. Generally yields lowest ending inventory value and lowest net income figure. Weighted Average - ANSWERSSelling all inventory simultaneously. Takes the weighted average of all units available for sale during the accounting period and then uses that average cost to determine the value of COGS and en