Question

1. Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
a. Profit margin unchecked
b. Equity ratio unchecked
c. Return on total assets checked
d. Total asset turnover checked

2. Which ratio summarizes the components applicable in 1.1?

a. Total asset turnover
b. Debt ratio
c. Return on total assets
d. Profit margin

3. What measure reflects the difference between current assets and current liabilities?

a. Return on total assets
b. Gross margin
c. Day's sales uncollected
d. Working capital

4. Which of the following short-term liquidity ratios measure how frequently a company collects its accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

a. Days' sales uncollected checked
b. Days' sales in inventory unchecked
c. Accounts receivable turnover checked
d. Acid-test ratio unchecked

Answer 1

Answer:

Explanation:

1. c. Return on total assets checked

d. Total asset turnover checked

2) b. Debt ratio

3) d. Working capital

4) c. Accounts receivable turnover checked

Answer 2

Answer:

1. c. Return on total assets checked and

d. Total asset turnover checked

2) b. Debt ratio

3) d. Working capital

4) c. Accounts receivable turnover checked

Explanation:

1. This is used to show how well a company utilizes it assets to generate sales.

2. Debt ratio is used to indicate the percentage of a company’s capital that was obtained through debt.

3. Working capital is that capital set aside for the day to day running of an organisation.

4. Accounts receivable turnover checked This is the number of times with a period usually a year a company collects it receivables.