35. The current ratio is calculated as current liabilities divided by current assets

True False

39. The greater the times interest earned ratio, the greater the risk a company is exposed to.

True False

41. The higher the accounts receivable turnover, the slower the accounts receivable are collected

True False

66. Extraordinary items:

A. Are not reported on a corporate income statement

B. Are included in income from operations

C. Are unusual and infrequent

D. Include changes in accounting principle

E. Are disclosed before discontinued operations on the income statement

85. Quick assets divided by current liabilities is equal to the:

A. Acid-test ratio

B. Current ratio

C. Working capital ratio

D. Current liability turnover ratio

E. Quick asset turnover ratio

86. Net sales divided by average accounts receivable is equal to the:

A. Days' sales uncollected

B. Average accounts receivable ratio

C. Current ratio

D. Profit margin

E. Accounts receivable turnover ratio

90. Net income divided by net sales is equal to the:

A. Return on total assets

B. Profit margin

C. Current ratio

D. Total asset turnover

E. Days' sales in inventory

95. One of several ratios that reflects solvency includes the:

A. Acid-test ratio

B. Current ratio

C. Times interest earned ratio

D. Total asset turnover

E. Days' sales in inventory

98. A company had a market price of $8.22 per share, earnings per share of $1.01 and dividends per share of $0.32. Its price-earnings ratio is equal to:

A. 8.14

B. 25.69

C. 6.18

D. 0.039

E. 0.123

118. A company has total assets of $5,600,482, common stock of 2,111,111, retained earnings of $1,058,473. What is the company's debt ratio?

A. 43.41%

B. 65.00%

C. 41.57%

D. 50.00%

E. 42.81%

True False

39. The greater the times interest earned ratio, the greater the risk a company is exposed to.

True False

41. The higher the accounts receivable turnover, the slower the accounts receivable are collected

True False

66. Extraordinary items:

A. Are not reported on a corporate income statement

B. Are included in income from operations

C. Are unusual and infrequent

D. Include changes in accounting principle

E. Are disclosed before discontinued operations on the income statement

85. Quick assets divided by current liabilities is equal to the:

A. Acid-test ratio

B. Current ratio

C. Working capital ratio

D. Current liability turnover ratio

E. Quick asset turnover ratio

86. Net sales divided by average accounts receivable is equal to the:

A. Days' sales uncollected

B. Average accounts receivable ratio

C. Current ratio

D. Profit margin

E. Accounts receivable turnover ratio

90. Net income divided by net sales is equal to the:

A. Return on total assets

B. Profit margin

C. Current ratio

D. Total asset turnover

E. Days' sales in inventory

95. One of several ratios that reflects solvency includes the:

A. Acid-test ratio

B. Current ratio

C. Times interest earned ratio

D. Total asset turnover

E. Days' sales in inventory

98. A company had a market price of $8.22 per share, earnings per share of $1.01 and dividends per share of $0.32. Its price-earnings ratio is equal to:

A. 8.14

B. 25.69

C. 6.18

D. 0.039

E. 0.123

118. A company has total assets of $5,600,482, common stock of 2,111,111, retained earnings of $1,058,473. What is the company's debt ratio?

A. 43.41%

B. 65.00%

C. 41.57%

D. 50.00%

E. 42.81%

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