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Unformatted text preview: 1 CORRECT To create a common size income statement ____________ all items on the income statement by ____________. A) multiply; net income B) multiply; total revenue C) divide; net income D) divide; total revenue E) multiply; COGS Feedback: To create a common size income statement divide all items on the income statement by total revenue. 2 CORRECT If a firm has "goodwill" recorded on its balance sheet it must have ____________. A) donated to charity B) participated in a benefit for a charitable cause C) participated in a company-wide fund raising drive for a charity D) acquired another firm E) none of the above Feedback: If a firm has "goodwill" recorded on its balance sheet it must have acquired another firm. 3 CORRECT An example of a liquidity ratio is A) current ratio B) fixed asset turnover C) acid test or quick ratio D) A and C E) B and C Feedback: An example of a liquidity ratio is the current ratio and the acid test or quick ratio. 4 CORRECT A firm has a higher asset turnover ratio than the industry average, which implies A) the firm is utilizing assets more efficiently than...
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This note was uploaded on 03/06/2012 for the course FINANCE 5700 taught by Professor Bob during the Spring '12 term at websteruniv.edu.
- Spring '12