Principles of Accounting II Lesson 7 Answers.docx.html - If...

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If there are images in this attachment, they will not be displayed.Download the original attachmentPrinciples of Accounting II Lesson 7Question 1 of 402.5 PointsIf management wishes to evaluate the ability of a business to provide funding to cover operating expenses, they could use the gross profit rate.A. rate of return on total assetsB. rate of return on common stockholders’ equityC. Gross profit rateD. times interest earned
Question 2 of 402.5 PointsCompute the gross profit rate when net sales are $350,000 and gross profits are $178,500.
Question 3 of 40
2.5 PointsIf Rick’s sales decreased from $90,000 (Year 1. to $45,000 (Year 2. and its cost of goods sold decreased from $30,000 (Year 1. to $20,000 (Year 2., then vertical analysis based on sales would show the followingdecreases for cost of goods sold for the two periods __________.
Question 4 of 402.5 PointsThe sales for Mary’s Services for Years 1, 2, and 3 are $25,000, $45,000, $60,000, respectively. The trend percentage for Year 3 is __________.
Question 5 of 402.5 PointsLiquidity ratios measure __________.A. how effectively a company is using its equityB. how effectively a company is using its liabilitiesC. a company’s ability to pay shareholdersD. a company’s ability to pay off short-term debts
Question 6 of 402.5 PointsScott Company had a current ratio of 2.76:1 in Year 1 and 2.57:1 in Year 2. This change in current ratio indicates that __________.
Question 7 of 402.5 PointsThe ratio that indicates how many days it takes to turn accounts receivable into cash is the __________.

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