The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishment will be reflected in the firm’s financial ratios in which one of the following ways?
Multiple Choice Quizzes with Answer in English (Page: 388)
Jasper United had sales of $21,000 in 2008 and $24,000 in 2009. The firm’s current accounts remained constant. Given this information, which one of the following statements must be true?
The cash coverage ratio directly measures the ability of a firm’s revenues to meet which one of its following obligations?
If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?
Which one of the following statements is correct?
Ratios that measure a firm’s financial leverage are known as ____ ratios.
Over the past year, the quick ratio for a firm increased while the current ratio remained constant. Given this information, which one of the following must have occurred? Assume all ratios have positive values.
A firm has an interval measure of 48. This means that the firm has sufficient liquid assets to do which one of the following?
A supplier, who requires payment within ten days, should be most concerned with which one of the following ratios when granting credit?
An increase in which one of the following will increase a firm’s quick ratio without affecting its cash ratio?
An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.
A firm uses 2008 as the base year for its financial statements. The common-size, base-year statement for 2009 has an inventory value of 1.08. This is interpreted to mean that the 2009 inventory is equal to 108 percent of which one of the following?
On a common-base year financial statement, accounts receivables will be expressed relative to which one of the following?
On a common-size balance sheet all accounts are expressed as a percentage of:
According to the Statement of Cash Flows, an increase in interest expense will ____ the cash flow from ____ activities.
According to the Statement of Cash Flows, a decrease in accounts receivable will _____ the cash flow from _____ activities.
Which one of the following is a source of cash?
Which one of the following is a source of cash?
Which one of the following is a use of cash?
Which one of the following is a source of cash?