Adventis FMC exam questions with answers

Adventis FMC exam questions with answers |/ |/ |/ |/ |/




Cash Ratio - CORRECT ANSWERS ✔✔Total Cash / Current
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Liabilities:
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Indicates a company's ability to use cash to pay off its current
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liabilities
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Current Ratio - CORRECT ANSWERS ✔✔Current Assets / Current
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Liabilities: Indicates whether a company's short-term assets are
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readily available to pay off its short- term liabilities
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Liquidity Ratios - CORRECT ANSWERS ✔✔Ratios that indicate a
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company's ability to meet its short-term obligations
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Efficiency Ratios - CORRECT ANSWERS ✔✔these turnover ratios
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indicate how effectively a company utilizes its assets
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Days Receivable - CORRECT ANSWERS ✔✔(Accounts receivable /
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annual revenue) X 365: average number of days an invoice is in
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accounts receivable before collection
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Asset Turnover - CORRECT ANSWERS ✔✔Total revenue ' Total
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Assets: Amount of revenues generated per dollar of assets;
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measures the efficiency of a company's use of its assets in
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generating sales revenue
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