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5 Written questions

5 Matching questions

  1. tests of profitability, tests of overall performance, liquidity, solvency, tests of efficiency
  2. 87%, which means no price control
  3. tests of liquidity
  4. Quick ratio (current assets-inventory/current liabilities)
  5. Merchandise inventory
  1. a consistes of goods that the pharmacy has purchased for resale (otc and rx drugs, cosmetics)
  2. b Total 3rd party prescriptions
  3. c 5 topics ratio analysis covers
  4. d measure the firm's ability to pay its current debt as it comes due (Current ratio, quick ratio,accounts payable period)
  5. e number should be bw 1-2, NCPA digest is 1.3

5 Multiple choice questions

  1. two sources that owners equity arises from
  2. Ratio measures how effectively all funds availableto the manager, both debt and equity, have been used. better indicator of manager's performance than ROE bc it considers all funds at teh manager's disposal, not just investements
  3. total annual pharmacy payroll/annual patient days
  4. measures how efficiently assets are used- making the maximum use of available assets (accounts receivable collection period, inventory turnover, asset turnover)
  5. statement of financial position/provides present financial status of the business

5 True/False questions

  1. solvencycan the firm pay its long-term debt on a continuing basis


  2. Generic fill ratio# of Rx's dispensed with generic product/total # of Rx's dispensed (more generics used, less drug expenses)


  3. accounts receivableamounts owed to the pharmacy by its customers as a result of th eordinary extension of credit (divided into those that arise from credit sales, and third parties)


  4. Accountinga specialized language used to communicate financial statements


  5. accrued expensesarise from payments made for a good or service in an accounting period PRIOR to the one during which the good/service is actually used