RandallHallAC202Quiz3

RandallHallAC202Quiz3 - financial numbers from other...

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AC 202 Principles of Accounting II Name Randall Hall Park University Quiz 3A-Chapter 17 Multiple Choice Questions-( 10 points Each )Select the ONE, BEST Answer 1. The ability to meet short-term obligations and to efficiently generate revenues is called: A. Liquidity and efficiency. 2. Three of the most common tools of financial analysis are: C. Horizontal analysis, vertical analysis, ratio analysis. 3. To compute trend percents the analyst should: A. Select a base period, assign each item in the base period statement a weight of 100%, and then express
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Unformatted text preview: financial numbers from other periods as a percent of their base period number. 4. The common-size percent is computed by: C. Dividing the analysis amount by the base amount and multiplying the result by 100. 1 Problem ( 60 points ) Use the balance sheets of Sando shown below to calculate the following ratios for 2008 (round to the hundredths): (a) Current ratio: $148000 / $62000 = 2.39 (b) Acid-test ratio: $87000 / $62000 = 1.40 (c) Debt ratio: $107000 / $415000 = 25.78% (d) Equity ratio: $308000 / $415000 = 74.22% 3...
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RandallHallAC202Quiz3 - financial numbers from other...

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