Financial ratios which assess the profitability of

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12. Financial ratios, which assess the profitability of company, include all of the following excepttheA.Dividend yield ratioC. Earnings per share ratioB.Gross profit percentageD. Return on sales ratio13. Which of the following statements is incorrect?14. This ratio of analytical measurement measures the productivity of assets regardless of capitalstructures.15. How are trade receivables used in the calculation of each of the following?Acid test (quick) ratioReceivable turnover16. If the current assets exceeds liabilities payments to creditors made on the last day of the monthwillA.Decrease current ratioC. Decrease net working capitalB.Increase current ratioD. Increase net working capital17. GRX, Inc. has a current ratio of 4:1. Which of the following transactions would normallyincrease its current ratio?18. Inventory turnover indicates:19. If Penta Mfg. Company decided to change from the FIFO inventory method to LIFO method during aperiod of rising prices, itsMGT ACCTG-UNDERSTANDING FINANCIAL STATEMENT AND ITS ANALYSISPage 23
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