1. The formula for Accounts Receivable turnover is
Select one:
a. Net Sales / average accounts receivable
b. Cost of goods sold / average accounts receivable
c. Net Sales / average merchandise inventory
d. 360 days / average accounts receivable
2. The category of ratios that determine the economic status ofpublicly-traded companies is
Select one:
a. Profitability ratios
b. Market value ratios
c. Liquidity Ratios
d. Solvency ratios
3. The working capital ratio is
Select one:
a. Quick assets / current liabilities
b. Working capital /current liabilities
c. Current assets minus current liabilities
d. Current assets/current liabilities
4. Earnings per share is calculated by
Select one:
a. Dividing net income by the authorized ordinary shares.
b. Dividing net income less preferred dividends by number ofordinary shares outstanding.
c. None of the above.
d. Dividing net income by the total number of ordinary andpreferred shares issued.
5. Which of the following belong to the profitabilityratios?
Select one:
a. Rate of return on equity
b. Rate of return on assets
c. All of the above
d. Gross Profit Margin
6. The category of ratios that shows the ability of the firm topay its long-term obligations is
Select one:
a. Profitability ratios
b. Solvency ratios
c. Market value ratios
d. Liquidity Ratios
7. Operating profit margin equals
Select one:
a. Income from operations / sales
b. Net income / sales
c. Gross profit / sales
d. Profit from operations / cost of sales
8. The following are quick assets except
Select one:
a. Short-term investments
b. Merchandise Inventory
c. Accounts Receivable
d. Cash
9. The following are liquidity ratios except
Select one:
a. Earnings per share
b. Working capital ratio
c. Quick ratio
d. Receivable turnover
10. Quick assets equals
Select one:
a. All current assets
b. Cash and Accounts receivable only.
c. Total assets less non-current assets
d. Current assets minus inventory
