d076 after fail OA Exam Questions & Answers Graded A+

What is the difference between the current ratio and the quick ratio? - ANSWER-Inventory is excluded in the calculation of the quick ratio. What is the term for the risk that changes in interest rates will impact the value of a bond? - ANSWER-Interest rate risk What is used to measure total risk? - ANSWER-Standard deviation What is the term for the return over the entire period that an investor owns a financial security? - ANSWER-Holding period return You signed an apartment contract today. You are going to pay $1,500 at the beginning of each month for the next 12 months, starting today. What type of cash flows is this contract? - ANSWER-An annuity due What is the rate at which the average price level of particular goods and services in an economy increases over a period of time? - ANSWER-Inflation rate Which type of interest rate includes interest on interest in addition to interest on the principal? - ANSWER-Compound interest What is the difference between return on assets (ROA) and return on equity (ROE)? - ANSWER-ROE considers the capital structure of a company, while ROA does not. What does high inventory turnover relative to the industry and competitors indicate? - ANSWER-The firm does not hold enough inventory and is making its customers wait longer to receive their purchased goods.