financial plan chapter 12 Questions
and answers.
The acid test ratio is the other name for the ___ratio. - Ans✔✔quick
EBIT is the firm's profit __________________. - Ans✔✔earnings before
interest and taxes
____ ratios tell whether a small business will be able to meet its short-
term financial obligations as they come due. - Ans✔✔Liquidity
Which of the following is the correct formula to calculate a firm's
current ratio? - Ans✔✔Current assets/current liabilities
Intangible assets include items such as ___, copyrights, and patents
that, although valuable, are not tangible. - Ans✔✔goodwill
Variable costs include expenses such as raw material costs, hourly
wages, and ________. - Ans✔✔sales commissions
Lenders, like banks, look for a minimum times-interest-earned ratio of
at _:1 before pronouncing a small company a good credit risk. -
Ans✔✔2
and answers.
The acid test ratio is the other name for the ___ratio. - Ans✔✔quick
EBIT is the firm's profit __________________. - Ans✔✔earnings before
interest and taxes
____ ratios tell whether a small business will be able to meet its short-
term financial obligations as they come due. - Ans✔✔Liquidity
Which of the following is the correct formula to calculate a firm's
current ratio? - Ans✔✔Current assets/current liabilities
Intangible assets include items such as ___, copyrights, and patents
that, although valuable, are not tangible. - Ans✔✔goodwill
Variable costs include expenses such as raw material costs, hourly
wages, and ________. - Ans✔✔sales commissions
Lenders, like banks, look for a minimum times-interest-earned ratio of
at _:1 before pronouncing a small company a good credit risk. -
Ans✔✔2
