Posted: September 16th, 2017

Kaplan University AC 499 Quiz 4 (Graded)

Grade Details – All Questions

1. Question : Which of the following ratios does NOT measure liquidity?

Student Answer: Net cash flow to current liabilities

Working capital to total assets

Current ratio

Quick ratio

2. Question : The ratio computed by dividing current assets by current liabilities is the

Student Answer: current ratio.

earnings ratio.

acid-test ratio.

quick ratio.

3. Question : Statements in which all items are expressed only in relative terms (percentages of a common base) are

Student Answer: horizontal statements.

percentage statements.

vertical statements.

common-size statements.

4. Question : Which of the following is NOT included in the computation of the quick ratio?

Student Answer: Inventory

Marketable securities

Accounts receivable

Cash

5. Question : At December 31, 2014 and 2013, Rollins Corp. had 200,000 shares of common stock and 20,000 shares of 5 percent, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2013 or 2014. Net income for 2014 was $1,000,000. For 2014, basic earnings per common share amounted to?

Student Answer: $5.00.

$4.75.

$4.50.

$4.00.

6. Question : The percentage of change in long-term liabilities between two balance sheet dates is an example of

Student Answer: vertical analysis.

solvency analysis.

profitability analysis.

horizontal analysis.

7. Question : Which of the following is a measure of the liquid position of a corporation?

Student Answer: Earnings per share

Inventory turnover

Current ratio

Number of times interest charges earned

8. Question : How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance?

Student Answer: The quick ratio would decrease.

The quick ratio would increase.

The quick ratio would not change.

The effect cannot be determined from the information given.

9. Question : Which of the following is included in the computation of the quick ratio?

Student Answer: Prepaid rent

Accounts receivable

Inventory

Supplies

10. Question : Which of the following ratios does NOT measure efficiency or activity of an entity?

Student Answer: Accounts receivable turnover

Age of accounts receivable

Net cash flow to current liabilities

Times interest earned

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