Ratios and Analysis

Ratios and AnalysisAccounting Play 12022-11-07T16:37:56+00:00

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2Question 1-10

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1. What is commonly used to help interpret financial statements?
- Ratios
- Prospecting
- Dowsing
- Justin Bieber
2. Financial ratios are used in which of the following types of analysis?
- Financial
- Managerial
- Economic
- All of the above
3. Ratio analysis may be useful to both internal and external stakeholders:
- True
- False
4. What is an inherent limitation to financial ratios?
- Based on historical information
- Bond amortization methodologies
- Depreciation methodologies
- All of the above
5. What is something profitability ratios measure or “do”?
- Identify aspects of operations and efficiency
- Identify the level and quality of earnings
- Measure the ability to meet short-term financial obligations
- Identify relative cash positions
6. How might the current ratio be classified?
- Profitability ratio
- Valuation ratio
- Liquidity ratio
- Debt and solvency ratio
7. How might return on equity be classified?
- Liquidity ratio
- Valuation ratio
- Profitability ratio
- Operating performance ratio
8. How might the debt ratio be classified?
- Liquidity ratio
- Debt and solvency ratio
- Valuation ratio
- Operating performance ratio
9. How might the fixed asset turnover ratio be classified?
- Liquidity ratio
- Valuation ratio
- Operating performance ratio
- Debt and solvency ratio
10. How might the earnings per share (EPS) ratio be classified?
- Liquidity ratio
- Valuation ratio
- Debt and solvency ratio
- Cash flow ratio
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