Sophia Finance Milestone 1_Complete Questions and Answers (Latest 2021/2022)

Sophia Principles of Finance Milestone 1 1 Ratios that measure the value of a company's stock are __________. leverage ratios asset management ratios market ratios liquidity ratios CONCEPT Overview of Ratio Analysis 2 How are assets typically organized on a balance sheet? In order of value, with least valuable assets first. In order of value, with most valuable assets first. In order of liquidity, with more liquid assets first. In order of liquidity, with least liquid assets first. CONCEPT Standardizing Financial Statements 3 Betina is trying to convince a buyer to purchase her company. The buyer wants to know what the company's overall financial condition was on December 31, 2018. What type of financial statement should Betina provide? Balance sheet Cash flow statement Statement of changes in equity Income statement CONCEPT Introducing Financial Statements 4 Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do? Calculate his total liabilities Calculate his net working capital Calculate his total assets Calculate his debt to equity ratio CONCEPT The Balance Sheet 5 What is a question that should be asked about accounts payable when forecasting? How much product on hand is too much? What is the cash conversion cycle? How quickly can we replenish goods? How will our cash inflows be affected? CONCEPT Analyzing Forecasts 6 What was one outcome of the Sarbanes-Oxley Act of 2002? Top management of U.S. companies must now individually and personally certify the accuracy of financial information. CEOs are prohibited from earning bonuses tied to company stock performance. Expenses related to corporate compliance are now tax-deductible. Public corporations are no longer required to use independent auditors to review their accounting practices. CONCEPT Corporate Governance 7 After a significant economic recession, prices and investing activity in the stock market began trending consistently upward six years ago. In the last three months, this trend has reversed and prices have fallen steadily. How are the past three months of the stock market classified?