Name and describe three of the five classes of financial ratios
What will be an ideal response?
Answer: Liquidity ratios measure a company's ability to pay off its short-term debt obligations. Financial leverage ratios measure the ability of the company to meet debt obligations over an extended period of time. Asset management ratios indicate how well the company is using its assets to generate revenue. Profitability ratios measure how well the company is doing in generating profits. Market value ratios indicate if the share price of the firm appears reasonable, based on its performance.
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Which journal is not used in the revenue cycle?
a. cash receipts journal b. sales journal c. purchases journal d. general journal
The market leader normally gains the most when ________
A) its total market diminishes B) it achieves expanded market share C) its personal communication channels expand D) the niche marketing efforts by other firms expand E) the major global competitors enter the market
Answer the following statements true (T) or false (F)
The FASB has implicitly adopted the cash flow valuation model.
Buddy was hired to play drums for a rock group scheduled to tour the Midwest. Part way through the tour, Buddy was tragically killed in a plane crash. The tour had to be discontinued until a new drummer could be found. The band lost money on the tour. Is Buddy's estate or agent responsible for the loss to the band?
Indicate whether the statement is true or false