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1. Which of the following summarizes a firm's revenues and expenses over a month, quarter, or year?
a. Income statement
b. Balance sheet
c. Statement of assets an
2. Which of the following financial ratios indicates the extent to which current assets can be converted to cash to meet current obligations?
a. Acid-test ratio
b. Quick ratio
c. Current ratio
d. Net profit ratio
3. Which of the following is the accounting equation?
a. Income - Expenses = Gross Income
b. Liabilities + Owners' Equity = Assets
c. Income - Cost of Goods Sold = Gross Income
d. Assets + Owners' Equity = Liabilities
4. The relationship between total liabilities and total assets is the definition for which following ratio?
a. Debt ratio
b. Current ratio
c. Inventory turnover
d. EBIT
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