FIN 461 TEST 4 QUESTIONS WITH
100% CORRECT ANSWERS!!
1 of 26
Term
Why is the fixed charge coverage ratio a broader measure of a firm's
coverage capabilities than the times interest earned ratio?
Give this one a try later!
the quick ratio eliminates inventories the times interest earned ratio
from the numerator includes only operating leases
, the fixed charge ratio the times interest earned ratio
includes lease payments does not consider the
as well as possibility of
interest payments higher interest rates
Don't know?
2 of 26
Term
What type of information found in supplementary schedules
is required for inclusion in an annual report?
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segmental data inflation data
leverage ratios earnings projections
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3 of 26
Term
Why is the quick ratio a more rigorous test of short-run
solvency than the current ratio?
Give this one a try later!
, the quick ratio eliminates the quick ratio eliminates
prepaid expenses for the inventories from the
denominator numerator
the quick ratio considers only
the quick ratio eliminates
cash and marketable securities
prepaid expenses for the
as current assets
numerator
Don't know?
4 of 26
Term
Which ratio or ratios measure the overall efficiency of the
firm in managing its investment in assets and in generating
return to
shareholders?
Give this one a try later!
total asset turnover and gross profit margin and net profit
operating profit margin margin
employee turnover and return on investment and
return on equity return on equity
Don't know?
5 of 26
100% CORRECT ANSWERS!!
1 of 26
Term
Why is the fixed charge coverage ratio a broader measure of a firm's
coverage capabilities than the times interest earned ratio?
Give this one a try later!
the quick ratio eliminates inventories the times interest earned ratio
from the numerator includes only operating leases
, the fixed charge ratio the times interest earned ratio
includes lease payments does not consider the
as well as possibility of
interest payments higher interest rates
Don't know?
2 of 26
Term
What type of information found in supplementary schedules
is required for inclusion in an annual report?
Give this one a try later!
segmental data inflation data
leverage ratios earnings projections
Don't know?
3 of 26
Term
Why is the quick ratio a more rigorous test of short-run
solvency than the current ratio?
Give this one a try later!
, the quick ratio eliminates the quick ratio eliminates
prepaid expenses for the inventories from the
denominator numerator
the quick ratio considers only
the quick ratio eliminates
cash and marketable securities
prepaid expenses for the
as current assets
numerator
Don't know?
4 of 26
Term
Which ratio or ratios measure the overall efficiency of the
firm in managing its investment in assets and in generating
return to
shareholders?
Give this one a try later!
total asset turnover and gross profit margin and net profit
operating profit margin margin
employee turnover and return on investment and
return on equity return on equity
Don't know?
5 of 26
