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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
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, 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.
What is the ratio that tells you on average how long it takes for a firm to
collect accounts receivable? - 🧠ANSWER ✔✔Average collection period
Three different names are used for interest rate for different purposes and
perspectives: - 🧠ANSWER ✔✔discount rate, required rate, and cost of
capital.
Simple interest is the interest only on the principal, while compound interest
is the interest on the principal plus the interest on earned interest. -
🧠ANSWER ✔✔
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PRIVACY STATEMENT. ALL RIGHTS RESERVED