Identify the statement below that describes what the Days' sales uncollected ratio assesses. O It measures how quickly a company can convert its accounts receivables into cash. O It assesses the company's ability to pay its debts. O It is a useful in evaluating the liquidity of inventory. O It measures how profitable a company is when it sells it products.

A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios?  a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures

When inventory is sold on account, which of the following is true? Operating cash flows are increased at the time of sale. Total assets are increased by the amount of the gross profit. Net income is increased by the amount of the sales price. Revenue is not increased until the cash is received. Both net income and liabilities are increased by the amount of the sales price.

1 When examining the current ratio and looking at the company's liquidity, which of the following ratios would NOT assist with evaluating liquidity?   A) inventory turnover   B) receivables turnover   C) quick ratio   D) profit margin

Using this data, calculate the following ratios: return on sales, inventory turnover, inventory-on-hand period, and current ratio.

What does the inventory turnover period ratio measure? Select one: a.Profitability. b.The average time an organisation holds inventory. c.The liquidity of the firm. d.How much the firm's current assets could decrease and still leave it able to pay its current liabilities.

Which of the ratios listed helps to indicate whether current liabilities could be paid without having to sell the inventory? a.Current ratio b.Profit margin c.Quick ratio d.Debt to equity

10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV

On an income statement, can a company report total revenues instead of net sales? Are these the same thing?

Which of the following statement is correct? O Inventory Turnover Ratio is a measure of how much the market is willing to pay (per share) for one dollar's worth of the firm's recorded earnings per share, and it is measure of the market's perception as to the future earnings potential of the firm. All the answers are incorrect. The times interest earned ratio is equal to Earnings Before Taxes (EBT) divided by Debt, and it is often used to assess a company's ability to service the interest on its debt with operating income from the current period. Asset activity ratios measure the ability of a firm to meet its short-term obligations. O When the investors have more confidence about the firm's future growth, then the higher P/E ratio is expected.