BMAL 590 BUSINESS FINANCE EXAM 2 QUESTIONS WITH CORRECT ANSWERS|100% verified

BMAL 590 BUSINESS FINANCE EXAM 2 QUESTIONS WITH CORRECT ANSWERS A company's balance sheet shows the value of assets, liabilities, and stockholders' equity CORRECT ANSWER At a specific point in time On a balance sheet, retained earnings are not "unspent cash" because CORRECT ANSWER They have been used to finance the firm's assets For both managers and external financial analysts, ________ is the single most important accounting number found on the income statement CORRECT ANSWER Net income (net profit after tax) Earnings per share (EPS) is calculated by CORRECT ANSWER Dividing earnings available for common stockholders by the number of shares of common stock outstanding Net working capital CORRECT ANSWER Is a measure of a firm's overall liquidity Why is the quick ratio a more appropriate measure of liquidity than the current ratio for a large-airplane manufacturer? CORRECT ANSWER It excludes inventory from the numerator of the ratio because it is difficult to convert inventory to cash and most sales are made on a credit basis