Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit margin  C. Cash coverage ratio D. Receivables turnover E. Quick ratio

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: Which of the following ratios is always the lowest? a. The net profit margin b. The gross profit…

A: Profit margin is a financial metric that measures profitability of a business or a specific product…

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: The higher the anticipated return on net operating assets (RNOA) relative to the anticipated growth…

A:

Q: Which of the following is not true? a. Coverage ratio provides information about borrowed funds…

A: concept. Ratio analysis. Ratio analysis is done to form opinion  regarding various aspects of…

Q: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…

A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: Define the following terms: inventory conversion period, average collection period, and payables…

A: All the transactions of the company that are happened during the year will be recorded first in the…

Q: Based on the market value ratio, which ratio determine stability, earning power and capital? Explain…

A: The market value ratio is the ratio on the basis of market value and some specified performance…

Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…

A: 1) Quick ratio= quick assets/ current liabilities  Quick assets= current assets- inventory- prepaid…

Q: Nominal values are measured in ________ and real values take account of

A: Given  Nominal values are measured ? Real values taken account of?

Q: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…

A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…

Q: A(n) a. inventory turnover ratio b. current ratio is useful in evaluating liquidity policies. c.…

A: Liquidity refers to the company's ability to determine how quickly it can convert the assets and use…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Explain the difference between: a) Cash Flows versus Accounting Estimates b) Static Payback Period…

A: When a company prepares financial statements or budgets it has to estimate various amounts. The…

Q: What is removed from current assets in order to calculate the Quick Ratio? marketable securities…

A: Quick ratio = (Total current Assets - Inventory) / Total current liabilities

Q: What are the importance of the following financial ratios? Price to earnings ratio. Earnings per…

A:

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…

A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…

Q: Which of the following is one measure of liquidity?   a. Quick ratio   b. Profit margin   c.…

A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: Which of the following is an approach to value? Pick the best answer. Question 1 Select one: a.…

A: Valuation is the process of determining the true fair or intrinsic value of the share of a company…

Q: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: Other elements being constant, the increase in an “interest receivable” account will lead to the…

A: Interest Receivable is a form of current asset owned by the company. It means interest that has been…

Q: Describe the annual cash flow analysis, which presents measures of investment worth based on yield?

A: The question is based on the concept of cash flow and its analysis in terms of discounted value of…

Q: What is “benchmarking” and how is it used in financial ratio analysis? Provide an example.

A: Benchmarking is a process used in financial ratio analysis to compare a company's performance and…

Q: Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital…

A: Quick assets are the highly liquid assets that include all the current assets except inventory and…

Q: What do the Liquidity ratios show?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…

A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…

Q: Which of the following best describes the current ratio?  a) Liquidity ratio b) Debt ratio c)…

A: Investors, analysts, and many other stakeholders utilize financial ratios as tools to assess a…

Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…

A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…

Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.

A: Liquidity, solvency and profitability analysis is performed to evaluate the company's performance.…

Q: rite a short note on "Profitability Ratios"

A: Profitability ratio shows the ability and efficiency of the firm and show how much are the expenses…