Describe the uses for each of the five types of ratios.
What will be an ideal response?
A. Liquidity ratios – Measure the company’s ability to meet its short-term obligations.
B. Leverage ratios – Measure the company’s ability to meet long-term obligations.
C. Profitability ratios – Measure the firm’s ability to generate profits from its resources (assets).
D. Efficiency ratios – Measure how effectively the firm manages its assets.
E. Market ratios – Indicate how the market values the company with respect to its accounting measures (earnings, EBITDA, etc.).
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On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of equity as of May 31 of the current year?
A. $49,700. B. $31,100. C. $40,400. D. $13,050. E. $20,500.
Which of the following statements is generally incorrect from an investor's perspective?
A. A 10% net margin is generally preferred over an 8% net margin. B. A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period. C. A 1:1 current ratio is generally preferred over a 1.5:1 current ratio. D. A 5% dividend yield is generally preferred over a 3% dividend yield.
A bank "gives value" when it allows a depositor to withdraw funds against a deposited item
Indicate whether the statement is true or false
What are the criteria for employer rules limiting soliciting activities?