Reference no: EM132210919
1. Which of the following is not an efficiency ratio
Accounts Receivable Turnover
Current Ratio
Working Capital Ratio
Inventory Turnover
2. Wal-Mart is a good example of a company that has high profitability but low efficiency when it involves their assets and resources.
True/False
3. The order in which financial statements are prepared is as follows
a. Income Statement;
b. Balance Sheet;
c. Statement of Stockholders Equity;
d. Statement of Cash Flows
True/ False
4. Income statement measures income on a given day
True/ False
5. Gross margin is not indicative of how solvent a company is, while Debt to Equity Ratio does indicate how able to company is to handle its liabilities in the future
True/ False
6. Solvency ratios show a company’s ability to make payments and pay off its long-term obligations to creditors, bondholders, and banks while Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they become due as well as their long-term liabilities as they become current
True/ False