Select one True False Feedback Correct The only difference between the two

Select one true false feedback correct the only

This preview shows page 33 - 37 out of 96 pages.

Select one: True False
Feedback Correct. The only difference between the two ratios is the elimination of inventory in the numerator. Liquidity ratios indicate a company's short-term debt-paying ability. These ratios include: (Select all that apply). Each incorrect answer results in a negative point mark. Select one or more: a. Number of days' sales in accounts receivable. This is open for debate. While your textbook marks this as a liquidity ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. b. Stock Value to Sales ratio. c. Inventory turnover. This is open for debate. While your textbook marks this as a liquidity ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. d. Equity ratio. e. Accounts receivable turnover. This is open for debate. While your textbook marks this as a liquidity ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. f. Current ratio. g. Cash ratio, aka as cash flow liquidity ratio. h. Quick ratio, aka as acid-test ratio. i. Total assets turnover. This is open for debate. While your textbook marks this as a liquidity ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. Feedback
The correct answers are: Current ratio., Quick ratio, aka as acid-test ratio., Cash ratio, aka as cash flow liquidity ratio. Question 2 Correct Mark 10.00 out of 10.00 Flag question Question text Profitability ratios are an important measure of a company's operating success. These tests include(Mark all that apply). Each incorrect answer results in a negative point mark. Select one or more: a. Acid-test (quick) ratio. b. Times interest earned ratio. This is open for debate. While your textbook marks this as a profitability ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. c. Times preferred dividends earned ratio. This is open for debate. While your textbook marks this as a profitability ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. d. Return on sales, aka Net Profit Margin Percentage, aka Net income to net sales. e. Return on assets. f. Earnings per share of common stock. This is open for debate. While your textbook marks this as a profitability ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. g. Inventory turnover.
h. Return on equity, aka return to average common stockholders' equity. i. Cash flow margin. This is open for debate. While your textbook marks this as a profitability ratio, other sources do not. Therefore, there is no positive nor negative mark for checking this answer. Feedback The correct answers are: Return on assets., Return on sales, aka Net Profit Margin Percentage, aka Net income to net sales., Return on equity, aka return to average common stockholders' equity.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture