Reference no: EM132966106
Problem 1: What is deducted from current assets in order to determine net working capital?
a) long term borrowings
b) current liabilities
c) intangible assets
d) equity
Problem 2: Which of the following is a working capital account?
a) Cash
b) machinery
c) goodwill
d) land
Problem 3: Which of the following statements is true?
a) the only current asset account excluded in calculating the Quick Ratio is accounts receivable
b) the debt to total assets ratio measures the proportion of long term debt to equity
c) the current ratio is an excellent way to measure profitability
d) the times interest earned ratio measures the extent to which a business ca service debt
Problem 4: The objective of completing an investment analysis for a market is...
a) to determine future market budgets
b) to determine if actions taken in the past year are indeed effective
c) to determine how much value a potential investment may yield for the company
d) to present the best cash flow projection to the company