Question 1

Current Ratio:  Current Assets/Current Liabilities

Accepted Answer

True

Answer

False

Question 2

The ratio that shows whether a firm can meet its current debts comfortably.

Accepted Answer

Current Ratio

Answer

Ratio of Debt

Answer

Ratio of Business

Question 3

Inventory Turnover:  Cost of Goods Sold/Average Merchandise Inventory

Accepted Answer

True

Answer

False

Question 4

Shows whether the average monthly inventory might be too large or small

Accepted Answer

Inventory Turnover

Answer

Current Ratio

Answer

Return on Sales

Answer

None of the Above

Question 5

Return on Investment:  Net Profit/Total Assets

Accepted Answer

True

Answer

False

Question 6

Shows the rate of return on the book value of everything owned in the business

Accepted Answer

Return on Investment

Answer

Return on Quick Ratio

Answer

Return on Current Ratio

Answer

None of the Above

Question 7

Return on Sales:  Net Profit/Sales

Accepted Answer

True

Answer

False

Question 8

Shows how profitable a firm's sales are for a specified period of time.

Accepted Answer

Return on Sales

Answer

Return on Investment

Answer

None of the Above

Answer

Return on Owners' Equity

Question 9

Return on Owners' Equity:  Net Profit/Owners' Equity

Accepted Answer

True

Answer

False

Question 10

Shows whether the owners are making a fair return on their investment

Accepted Answer

Return on Owners' Equity

Answer

None of the Above

Answer

Return on Current Assets

Answer

Return on Current Affairs

Question 11

_______is the difference between current assets and current liabilities

Accepted Answer

Working Capital

Answer

None of the Above

Answer

Working Hours

Answer

Working too much

Question 12

_____is the movement of cash into and out of a business

Accepted Answer

Cash Flow

Answer

Cash Consideration

Answer

Cash flowers

Answer

none of the above

Question 13

___________is the amount remaining after subtracting all expenses from revenues, except taxes.

Accepted Answer

Net Profit

Answer

Net Money

Answer

None of the Above

Answer

Less Profit

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