Determine how effectively firm is managing its assets

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1. If an analyst's goal is to determine how effectively a firm is managing its assets, which of the following sets of ratios would s/he examine?

a. ?profit margin, current ratio, fixed charge coverage ratio

b. ?quick ratio, debt ratio, time interest earned

c. ?inventory turnover ratio, days sales outstanding, fixed asset turnover ratio

d. ?total assets turnover ratio, price earnings ratio, return on total assets

e. ?time interest earned, profit margin, fixed asset turnover ratio

2. Which of the following agreements were made as a part of the Basel III Accord (2010)??

a. ?Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises

b. ?Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions

c. ?Agreement to create new organizations to help provide consumers clear and accurate information related to credit so that better-informed decisions can be made

d. Agreement to permit the U.S. government to purchase up to $700 billion in troubled mortgages in an attempt to improve liquidity in the financial markets?

e. ?Agreement to limit the salaries of executives whose companies received Troubled Asset Relief Program (TARP) funds.

Reference no: EM131835135

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