d076 after fail OA
What is the difference between the current ratio and the quick ratio? - ✔✔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? - ✔✔
Interest rate risk
What is used to measure total risk? - ✔✔Standard deviation
What is the term for the return over the entire period that an investor owns a financial security? - ✔✔
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? - ✔✔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? - ✔✔Inflation rate
Which type of interest rate includes interest on interest in addition to interest on the principal? - ✔✔
Compound interest
What is the difference between return on assets (ROA) and return on equity (ROE)? - ✔✔ROE considers
the capital structure of a company, while ROA does not.
What does high inventory turnover relative to the industry and competitors indicate? - ✔✔The firm
does not hold enough inventory and is making its customers wait longer to receive their purchased
goods.
What is the difference between the current ratio and the quick ratio? - ✔✔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? - ✔✔
Interest rate risk
What is used to measure total risk? - ✔✔Standard deviation
What is the term for the return over the entire period that an investor owns a financial security? - ✔✔
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? - ✔✔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? - ✔✔Inflation rate
Which type of interest rate includes interest on interest in addition to interest on the principal? - ✔✔
Compound interest
What is the difference between return on assets (ROA) and return on equity (ROE)? - ✔✔ROE considers
the capital structure of a company, while ROA does not.
What does high inventory turnover relative to the industry and competitors indicate? - ✔✔The firm
does not hold enough inventory and is making its customers wait longer to receive their purchased
goods.
