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97.Which one of the following is a measure of liquidity?A)Debt-equity ratioB)Return on assetsC)Inventory turnoverD)Interval measureE)Times interest earned ratioAns: D Level: Intermediate Subject: Financial Ratios Type: Concepts98.Which of the following is (are) a measure of long-term solvency?I Total debt ratioII Cash coverage ratioIII Price-earnings ratioIV Market-to-book ratio99.The current ratio:100.The quick ratio:101.Which one of the following measures indicates how long a firm can continue operating without any additional cash inflows?A)Current ratioB)Cash ratioC)Quick ratioD)Interval measureE)Total debt ratioAns: D Level: Intermediate Subject: Interval Measure Type: Concepts102.Last year a firm had a total debt ratio of .31. This year the total debt ratio is .33. Which one of the
following statements can be made with certainty based on this information?103.An equity multiplier of 1.64 means that for every $1 the firm raises in new equity, the firm can: