1. Which of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client? Choices: Current and cash ratio Return on sales and return on asset Debt and debt-to-equity ratio Book value and price-to-earnings ratio
1. Which of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client?
Choices:
Current and cash ratio
Return on sales and
Debt and debt-to-equity ratio
Book value and price-to-earnings ratio
2. It is assumed that the
Choices:
No dividend to be given to shareholders
None of the choices is correct.
The firm is indifferent as to distribute dividends or to reinvest the income
All the earnings for the period shall be distributed to shareholders
3. Which of the following is correct with regards to cash discounts offering?
Choices:
These are granted because customer acquires high quantity of products and goods
It is used lengthen the cash conversion cycle without putting pressure the clients
Investment in accounts receivable will likely grow since more customers will pay on a later date
Step by step
Solved in 2 steps
