Answer the following statements true (T) or false (F)
1. An accounts receivable turnover that is too high may indicate that credit is too tight, causing the loss
of sales to good customers.
2. The debt ratio is the ratio of total debt divided by total equity.
3. The debt to equity ratio shows the proportion of total liabilities relative to total equity.
4. The times-interest-earned ratio measures the number of times earnings before interest and taxes can cover interest expense.
5. The rate of return on total assets measures a company's success in using its assets to earn a profit.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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The relationship between gross margin in dollars and the average investment at cost is known as _____
a. asset turnover b. gross margin return on investment c. the strategic profit model d. inventory turnover
Only outsiders who would ordinarily be deemed fiduciaries of the corporations in whose stock they trade can be liable for insider trading
a. True b. False Indicate whether the statement is true or false
________ is a type of exponential smoothing that can also include trend
Fill in the blank with correct word.
Parts Inc., a supplier of automobile component parts, allows its customers a 60-day credit period. A leading automobile company demanded a 90-day credit period on all its purchases. The automobile company also made it clear to Parts Inc. that if the credit period was not extended to 90 days, then it would find a different supplier for its component parts. Which of the following approaches to negotiation does this scenario best illustrate?
A. Integrative bargaining B. Distributive bargaining C. Mediation D. Litigation