ACTG 210 FINAL TEST WITH SOLUTION

ACTG 210 FINAL TEST WITH
SOLUTION

Liquidity refers to:

a. the life cycle of the company

b. the amount of receivables the company has in its balance sheet

c. the amount of financial leverage

d. none of the above - ANSWER d. none of the above




which one of the following ratios does not involve assets?

a. current ratio

b. profit margin

c. account receivable turnover

d. inventory turnover - ANSWER b. profit margin




which ratio provides an indication of the salability of the companys products?

a. account receivable turnover

b. current ratio

c. inventory turnover

, d. gross profit margin - ANSWER c. inventory turnover




which of the following is one measure of liquidity?

a. debt to equity ratio

b. times interest earned

c. quick ratio

d. none of the above - ANSWER c. quick ratio




Krogers 2012 financial statements show total operating assets of $22502 mil,
total operating liabilities of $11345 mil, and net income totaling $602 mil.
How much are Krogers net operating assets (NOA) for the year?

a. $14496 mil

b. $11157 mil

c. 32852 mil

d. $19758 mil

e. there isn't enough info available - ANSWER b. $11,157 mil




which of the following is an inventory account for manufacturing companies?

a. overhead

b. finished goods