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Question;The ability to provide financial returns sufficient to attract and retain financing is called: Liquidity and efficiency.A. Solvency.B. Profitability.C. Market prospects.D. Creditworthiness.To compute trend percents the analyst should: Select a base period, assign each item in the base period statement a weight of 100% and then express financial numbers from other periods as a percent of the related base period number.A. Subtract the analysis period number from the base period number.B. Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100.C. Compare amounts across industries using Dun and Bradstreet.D. All of the above.Comparative financial statements in which each amount is expressed as a percentage of a base amount, and in which the base amount is expressed as 100% are called: Comparative statements.A. Common-size comparative statements.B. General-purpose financial statements.C. Base line statements.D. Index statements.Current assets minus current liabilities yields a result referred to as: Profit margin.A. Financial leverage.B. Current ratio.C. Working Capital.D. Quick assets.Current assets divided by current liabilities yields a result referred to as the: Current ratio.A. Quick ratio.B. Debt ratio.C. Liquidity ratio.D. Solvency ratio.The average number of times a company's inventory is sold during an accounting period, calculated by dividing cost of goods sold by the average inventory balance, is referred to as the: Accounts receivable turnover.A. Inventory turnover.B. Days' sales uncollected.C. Current ratio.D. Price-earnings ratio.A company had a price of $37.50 per share, earnings per share of $1.25, and dividends per share of $.40. This implies its price-earnings ratio equals: 3.1.A. 30.0.B. 93.8.C. 32.0.D. 3.3.

Paper#49845 | Written in 18-Jul-2015

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