52.
Which of the following is a measure of short-term liquidity?
53.
The current ratio will be _______________ the quick ratio.
54.
The measures most often used in evaluating solvency—the current ratio, quick ratio, and
amount of working capital—are developed from amounts appearing in the:
55.
Which American industry would tend to have the greatest debt ratio?
56.
The current ratio:
57.
How would a company’s working capital be affected if a substantial amount of accounts
payable were paid in cash?
58.
Current assets are those assets that can be converted into cash within:
59.
Working capital is calculated by:
60.
The quick ratio:
61.
Short-term creditors are most likely to use the quick ratio instead of the current ratio in
evaluating the solvency of a company with large, slow-moving:
62.
Which of the following is considered a quick asset?
63.
Which of the following transactions would cause a change in the amount of a company’s
working capital?
64.
The debt ratio indicates the percentage of:
65.
The debt ratio is used primarily as a measure of:
66.
Generally speaking, which appears to be a desirable current ratio?
67.
If a company has a current ratio of 2 to 1, and purchases inventory on credit, what will this
do to its current ratio?
68.
When comparing the current ratio to the quick ratio:
69.
If a retail store has a current ratio of 2.5 and current assets of $195,000, the amount of
working capital is:
14–30
70.
The Plaza Company has working capital of $540,000 and a current ratio of 3 to 1. The
amount of current assets is:
Shown below are selected data from the balance sheet of Compros, a small electronics
store (dollar amounts are in thousands):
71.
Refer to the information above. What is the quick ratio?
72.
Refer to the information above. What is the current ratio?
73.
Refer to the information above. What is the amount of working capital?
74.
Refer to the information above. What is Compros’ debt ratio?
Shown below are selected data from the balance sheet of Bill’s Auto Parts, a retail store
(dollar amounts are in thousands):
75.
Refer to the information above. What is the quick ratio?
76.
Refer to the information above. What is the current ratio?
77.
Refer to the information above. Working capital equals:
78.
Refer to the information above. Bill’s debt ratio is:
79.
If a retail store has a current ratio of 2.5 and working capital of $117,000. What are the total
of the current assets?
80.
The Piazza Company has working capital of $540,000 and current assets of $810,000. The
current ratio is:
81.
All of the following captions or subtotals are typical of a multiple-step income statement,
except
:
82.
The gross profit rate represents:
83.
A rising gross profit rate most strongly suggests:
84.
Operating income excludes each of the following,
except
:
85.
In calculating earnings per share, the denominator of the equation includes:
86.
In a multiple-step income statement, interest expense usually is not classified as an
operating expense because interest charges:
87.
In a multiple-step income statement, income taxes are not classified as operating
expenses because:
88.
All of the following are true of operating expenses
except
:
14–40
89.
The measurement that best reflects investors’ expectations about future earnings is:
Earnings per share.
Return on assets.
The price-earnings ratio.
Return on equity.
Shown below are selected data from the financial statements of Supreme Co. Dollar
amounts are in millions (except for the per share data).
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per
share. At year-end, the Wall Street Journal listed Supreme’s capital stock as trading at $88
per share.