Chapter 17 practice quiz

Chapter 17 practice quiz - Review Assessment: Chapter 17:...

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Review Assessment: Chapter 17: True/False Quiz Questio n 1 0 out of 1 points In horizontal analysis of the income statement, each item is stated as a percentage of total sales. Selected Answer: Correct Answer: Feedback : Incorrect. This statement is true for a vertical analysis, not a horizontal analysis. Questio n 2 1 out of 1 points Solvency is the ability of a business to meet its financial obligations as they come due. Selected Answer: Questio n 3 0 out of 1 points The ratio of net sales to assets provides a solvency measure that shows the margin of safety of the debtholders. Selected Answer: Correct Answer: Feedback: Incorrect. The net sales to assets ratio is a profitability ratio that shows how effectively and efficiently assets are used to generate sales. Questio n 4 1 out of 1 points The quick ratio or acid-test ratio is the ratio of the sum of cash, receivables, and marketable securities to current liabilities. Selected Answer: Questio n 5 1 out of 1 points Net sales divided by the year-end net accounts receivable gives the accounts receivable turnover.
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Questio n 5 1 out of 1 points Selected Answer: Questio n 6 1 out of 1 points
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This note was uploaded on 06/20/2011 for the course ACT ACT 2292 taught by Professor Amyhulsey during the Fall '09 term at Troy.

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Chapter 17 practice quiz - Review Assessment: Chapter 17:...

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