TIM 305 Test 2 Questions With Correct Answers.

TIM 305 Test 2 Questions With Correct
Answers
Liquidity |ratios |measure |the |amount |of |long-term |debt |held |by |the |firm. |- |CORRECT |
ANSWER✔✔-False



Which |of |the |following |is |a |limitation |of |ratio |analysis? |- |CORRECT |ANSWER✔✔-Ratios |are |
more |meaningful |when |compared |to |some |standard |of |performance.



The |uniform |system |of |accounts |helps |managers |organize |the |statement |of |cash |flows. |- |
CORRECT |ANSWER✔✔-False



Dividends |- |CORRECT |ANSWER✔✔-reduce |retained |earnings |when |declared.



Cash |is |found |in |the |owner's |equity |account. |- |CORRECT |ANSWER✔✔-False



Securities |held |by |the |firm |for |more |than |are |year |are |classified |as |- |CORRECT |ANSWER✔✔-
long-term |investments.



The |DuPont |ratio |shows |that |return |on |assets |is |a |function |of |- |CORRECT |ANSWER✔✔-current |
ratio |and |debt |ratio.



Owners |would |like |to |have |a |higher |current |ratio |than |lenders. |- |CORRECT |ANSWER✔✔-False



Which |of |the |following |is |an |example |of |an |"other" |asset? |- |CORRECT |ANSWER✔✔-Patents



The |DuPont |ratio |is |a |combination |of |two |ratios. |- |CORRECT |ANSWER✔✔-False