Business Finance - Peregrine Section Review Questions with correct answers 100% 2025/2026

Business Finance - Peregrine Section Review Questions with correct answers 100% 2025/2026 A company's balance sheet shows the value of assets, liabilities, and stockholders' equity _____. A. for any given period of time B. at a specific point in time C. at the end of the fiscal year - Correct Answer B. at a specific point in time Match the ratios to their ratio type. A. Debt Ratios B. Activity Ratios C. Market Ratios D. Liquidity Ratios E. Profitability Ratios Current Ratio & Quick (Acid Test) Ratio Turnover ratios & Collection/Payment Period Debt-to-Equity Ratio & Times Interest Earned (TIE) Profit Margin & Return on Assets Price/Earnings (P/E) Ratio & Market-to-Book Ratio - Correct Answer A. Debt Ratios: Debt-to-Equity Ratio & Times Interest Earned (TIE) B. Activity Ratios: Turnover ratios & Collection/Payment Period C. Market Ratios: Price/Earnings (P/E) Ratio & Market-to-Book Ratio D. Liquidity Ratios: Current Ratio & Quick (Acid Test) Ratio E. Profitability Ratios: Profit Margin & Return on Assets Balance Sheet Assets - Correct Answer Cash and cash equivalents are assets such as checking account balances at commercial banks that can be used directly as means of payment. Marketable securities represent liquid short-term investments, which financial analysts view as a form of "near cash." They include Treasury notes, commercial paper, and others. Accounts receivable represent the amount customers owe the firm from sales made on credit. Inventories include raw materials, work in process (partially finished goods), and finished goods held by the firm. Intangible assets include items such as patents, trademarks, copyrights, or mineral rights entitling the company to extract oil and gas on specific properties. Gross property, plant, and equipment (PP&E) is the original cost of all real property, structures, and long-lived equipment owned by the firm. Net property, plant, and equipment is calculated as Gross PP&E less accumulated depreciation - the cumulative expense recorded for the depreciation of fixed assets