Reference no: EM132966146

Problem 1: What is inventory divided into to calculate the inventory turnover ratio?

a) total assets

b) gross profit

c) cost of goods sold

d) operating expenses

Problem 2: What represents the receipt of money generated by revenues less cash expenses?

a) cash inflow plus depreciation

b) cash inflow

c) profit before taxes plus depreciation

d) cash outflow

Problem 3: What is the process of finding the present value of a series of future cash flows?

a) compounding

b) adding

c) subtracting

d) discounting

Problem 4: Who is responsible for coordinating the operating budgets and preparing the master budget?

a) the systems manager

b) the controller

c) the treasurer

d) the sales manager

Problem 5: Which ratio measures liquidity?

a) total assets turnover ratio

b) average collection period

c) return on revenues ratio

d) current ratio