Posted: September 16th, 2017
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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