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?
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?
