ACTG 210 FINAL TEST WITH
SOLUTION
Liquidity refers to:
a. the life cycle of the company
b. the amount of receivables the company has in its balance sheet
c. the amount of financial leverage
d. none of the above - ANSWER d. none of the above
which one of the following ratios does not involve assets?
a. current ratio
b. profit margin
c. account receivable turnover
d. inventory turnover - ANSWER b. profit margin
which ratio provides an indication of the salability of the companys products?
a. account receivable turnover
b. current ratio
c. inventory turnover
, d. gross profit margin - ANSWER c. inventory turnover
which of the following is one measure of liquidity?
a. debt to equity ratio
b. times interest earned
c. quick ratio
d. none of the above - ANSWER c. quick ratio
Krogers 2012 financial statements show total operating assets of $22502 mil,
total operating liabilities of $11345 mil, and net income totaling $602 mil.
How much are Krogers net operating assets (NOA) for the year?
a. $14496 mil
b. $11157 mil
c. 32852 mil
d. $19758 mil
e. there isn't enough info available - ANSWER b. $11,157 mil
which of the following is an inventory account for manufacturing companies?
a. overhead
b. finished goods
SOLUTION
Liquidity refers to:
a. the life cycle of the company
b. the amount of receivables the company has in its balance sheet
c. the amount of financial leverage
d. none of the above - ANSWER d. none of the above
which one of the following ratios does not involve assets?
a. current ratio
b. profit margin
c. account receivable turnover
d. inventory turnover - ANSWER b. profit margin
which ratio provides an indication of the salability of the companys products?
a. account receivable turnover
b. current ratio
c. inventory turnover
, d. gross profit margin - ANSWER c. inventory turnover
which of the following is one measure of liquidity?
a. debt to equity ratio
b. times interest earned
c. quick ratio
d. none of the above - ANSWER c. quick ratio
Krogers 2012 financial statements show total operating assets of $22502 mil,
total operating liabilities of $11345 mil, and net income totaling $602 mil.
How much are Krogers net operating assets (NOA) for the year?
a. $14496 mil
b. $11157 mil
c. 32852 mil
d. $19758 mil
e. there isn't enough info available - ANSWER b. $11,157 mil
which of the following is an inventory account for manufacturing companies?
a. overhead
b. finished goods
