{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Quiz%20-%20Performance - 4 The larger the Accounts...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Performance – True or False Questions 1. The difference between the current and quick (acid test) ratios can give an indication of how much inventory a firm is carrying. 2. The difference between the gross profit and the operating profit gives an indication of how much a firm is spending on overhead (selling, general and administrative expenses). 3. Times Interest Earned is an indicator of a firm's ability to service its debt.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4. The larger the Accounts Receivable Turnover ratio, the longer it is taking for a firm to receive payment from its customers. 5. When looking at an income statement, it is a good idea to convert actual dollar figures to a % of sales in order to compare the relative value of expenses over time....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online