D076 AFTER FAIL OA
What00is00the00difference00between00the00current00ratio00and00the00quick00ratio?00-
00ans--✔✔Inventory00is00excluded00in00the00calculation00of00the00quick00ratio.
What00is00the00term00for00the00risk00that00changes00in00interest00rates00will00impact00the0
0value00of00a00bond?00-00ans--✔✔Interest00rate00risk
What00is00used00to00measure00total00risk?00-00ans--✔✔Standard00deviation
What00is00the00term00for00the00return00over00the00entire00period00that00an00investor00own
s00a00financial00security?00-00ans--✔✔Holding00period00return
You00signed00an00apartment00contract00today.00You00are00going00to00pay00$1,50000at00t
he00beginning00of00each00month00for00the00next001200months,00starting00today.00What00t
ype00of00cash00flows00is00this00contract?00-00ans--✔✔An00annuity00due
What00is00the00rate00at00which00the00average00price00level00of00particular00goods00and00
services00in00an00economy00increases00over00a00period00of00time?00-00ans--
✔✔Inflation00rate
Which00type00of00interest00rate00includes00interest00on00interest00in00addition00to00interes
t00on00the00principal?00-00ans--✔✔Compound00interest
What00is00the00difference00between00return00on00assets00(ROA)00and00return00on00equit
y00(ROE)?00-00ans--
✔✔ROE00considers00the00capital00structure00of00a00company,00while00ROA00does00not.
What00does00high00inventory00turnover00relative00to00the00industry00and00competitors00in
dicate?00-00ans--
✔✔The00firm00does00not00hold00enough00inventory00and00is00making00its00customers00w
ait00longer00to00receive00their00purchased00goods.
What00is00the00ratio00that00tells00you00on00average00how00long00it00takes00for00a00firm00to
00collect00accounts00receivable?00-00ans--✔✔Average00collection00period
Three00different00names00are00used00for00interest00rate00for00different00purposes00and00
perspectives:00-00ans--✔✔discount00rate,00required00rate,00and00cost00of00capital.
What00is00the00difference00between00the00current00ratio00and00the00quick00ratio?00-
00ans--✔✔Inventory00is00excluded00in00the00calculation00of00the00quick00ratio.
What00is00the00term00for00the00risk00that00changes00in00interest00rates00will00impact00the0
0value00of00a00bond?00-00ans--✔✔Interest00rate00risk
What00is00used00to00measure00total00risk?00-00ans--✔✔Standard00deviation
What00is00the00term00for00the00return00over00the00entire00period00that00an00investor00own
s00a00financial00security?00-00ans--✔✔Holding00period00return
You00signed00an00apartment00contract00today.00You00are00going00to00pay00$1,50000at00t
he00beginning00of00each00month00for00the00next001200months,00starting00today.00What00t
ype00of00cash00flows00is00this00contract?00-00ans--✔✔An00annuity00due
What00is00the00rate00at00which00the00average00price00level00of00particular00goods00and00
services00in00an00economy00increases00over00a00period00of00time?00-00ans--
✔✔Inflation00rate
Which00type00of00interest00rate00includes00interest00on00interest00in00addition00to00interes
t00on00the00principal?00-00ans--✔✔Compound00interest
What00is00the00difference00between00return00on00assets00(ROA)00and00return00on00equit
y00(ROE)?00-00ans--
✔✔ROE00considers00the00capital00structure00of00a00company,00while00ROA00does00not.
What00does00high00inventory00turnover00relative00to00the00industry00and00competitors00in
dicate?00-00ans--
✔✔The00firm00does00not00hold00enough00inventory00and00is00making00its00customers00w
ait00longer00to00receive00their00purchased00goods.
What00is00the00ratio00that00tells00you00on00average00how00long00it00takes00for00a00firm00to
00collect00accounts00receivable?00-00ans--✔✔Average00collection00period
Three00different00names00are00used00for00interest00rate00for00different00purposes00and00
perspectives:00-00ans--✔✔discount00rate,00required00rate,00and00cost00of00capital.