Which of these are liquidity ratios?
A. Fixed asset turnover
B. Net profit margin
C. Times interest earned
D. Receivables turnover
Answer: D
You might also like to view...
Suppose that a change in the expected inflation rate leads supply and demand to adjust so that the expected real interest rate is unchanged at 3.0 percent. The tax rate is 30 percent. Initially, the expected inflation rate is 3.0 percent. If the expected inflation rate rises from 3 percent to 6 percent, the after-tax expected real interest rate
A. rises by 1.8 percent. B. rises by 0.9 percent. C. falls by 0.9 percent. D. falls by 1.8 percent.
One of the factors leading courts away from a laissez-faire approach to contract law was
a. the movement away from requiring written contracts with a seal affixed. b. a change in relative bargaining power between parties to contracts. c. the assumption that promises are not legally significant. d. the assumption that parties had freedom to contract and would have to live with the consequences.
Federal courts have jurisdiction over matters such as divorce if the parties to the case now live in separate states
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The Dividends account is normally closed by debiting it. 2. After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $4,000 debit balance. This result implies that Cleaver earned a net income of $4,000. 3. After posting the entries to close all revenue and expense accounts, Marker Company's Income Summary account has a credit balance of $6,000, and its Dividends account has a debit balance of $2,500. These balances indicate that net income for the current accounting period amounted to $3,500. 4. When there is a net loss, the Income Summary account would have a credit balance. 5. The Income Summary account is used to close the permanent accounts at the end of an accounting period.