Reference no: EM132966096

Problem 1: Which of the following statements is false?

a) return on total assets is calculated by dividing profit for the year by total assets

b) horizontal analysis is also called common-size statement analysis

c) the higher the inventory turnover is, the better it is

d) return on revenue is considered a profitability ratio

Problem 2: What two key concepts are involved in investment decisions?

a) receipts and cash inflow

b) disbursements and cash outflow

c) net cash inflow and net cash receipts

d) time value and cash

Problem 3: What is the term for payments made for which services have not yet been recieved?

a) deferred liabilities

b) prepaid expenses

c) accrued liabilities

d) accrued expenses