Which of the following set of ratios relates the market price of the firms common stock to selected financial statement items?

A: Liquidity Ratios

B: Leverage Ratios

C: Profitability Ratios

D: Market Value Ratios

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Market Value Ratios

If a firm uses cash to purchase inventory, its quick ratio will?

A: Increase

B: Decrease

C: Remain unaffected

D: Become zero

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Decrease

Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):

A: Operating activity

B: Investing activity

C: Financing activity

D: None of the given options

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Investing activity

Which of the following ratios are particularly interesting to short term creditors?

A: Liquidity Ratios

B: Long-term Solvency Ratios

C: Profitability Ratios

D: Market Value Ratios

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Liquidity Ratios

Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?

A: Sole-proprietorship

B: Partnership

C: Corporation

D: None of the given options

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Partnership

You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?

A: Rs. 1,000 because it has the higher future value

B: Rs. 1,000 because you receive it sooner

C: Rs. 1,050 because it is more money

D: Either because both options are of equal value

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Either because both options are of equal value

Which of the following ratios are particularly interesting to shortterm creditors?

A: Liquidity Ratios

B: Long-term Solvency Ratios

C: Profitability Ratios

D: Market Value Ratios

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Liquidity Ratios

In which form of Business, owners have limited liability?

A: sole proprietorship

B: partnership

C: joint stock company

D: none of the above

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joint stock company

Balance Sheet is based upon which of the following formula?

A: Assets = Liabilities “ Stockholders equity

B: Assets + Liabilities = Stockholders equity

C: Assets + Stockholders equity = Liabilities

D: Assets = Liabilities + Stockholders equity

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Assets = Liabilities + Stockholder’s equity

Quick Ratio is also known as_________?

A: Current Ratio

B: Acid-test Ratio

C: Cash Ratio

D: None of the given options

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Acid-test Ratio

1 109 110 111 112 113 117