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The excess of current assets over current liabilities is called

The excess of current assets over current liabilities is called: 
A. Current ratio
B. Working capital
C. Debt ratio
D. Quick ratio

 


 

42. Quick assets include which of the following? 
A. Cash, marketable securities and receivables.
B. Cash, marketable securities and inventories.
C. Cash, inventories and receivables.
D. Market securities, receivables and inventories.

 


 

43. The ratio which measures total liabilities as a percentage of total assets is called: 
A. Current ratio
B. Working capital
C. Debt ratio
D. Quick ratio

 


 

44. The price/earnings ratio is measured by dividing 
A. Book value by earnings per share.
B. Par value by earnings per share.
C. Market value by earnings per share.
D. Market value by total net income.

 


 

45. The principle factors affecting the quality of working capital are: 
A. The nature of the current assets.
B. The length of time to convert current assets into cash.
C. Both A and B.
D. Neither A nor B.

 


 

46. All of the following ratios are considered measures of profitability except: 
A. Earnings per share
B. Gross profit rate
C. Price earnings ratio
D. Return on assets

 


 

47. All of the following ratios are considered measures of liquidity except: 
A. Quick ratio
B. Debt ratio
C. Current ratio
D. Receivables turnover rate

 


 

48. The term classified financial statements refers: 
A. To the financial statements of all companies working on government projects.
B. Only to the financial statements of defense contractors working on secret projects.
C. To financial statements prepared for use by management, but not for distribution outside of the organization.
D. To financial statements in which items with certain characteristics are placed together in a group in an effort to develop useful subtotals.

 


 

49. Comparative financial statements compare the company's current statements with: 
A. Those of prior periods.
B. Those of other companies in the same industry.
C. Those of the company's principal competitor.
D. The budgeted level of performance for the period.

 


 

50. Which of the following is not a measure of short-term liquidity? 
A. Quick ratio.
B. Working capital.
C. Current ratio.
D. Debt ratio.

 

Feb 01 2020 View more View Less

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