NAME

Question types


Start with


Question limit

of 73 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. solvency tests
  2. tests of profitability, tests of overall performance, liquidity, solvency, tests of efficiency
  3. current assets
  4. tests of liquidity
  5. accrual method of accounting
  1. a those that will be sold, consumed, or converted to cash within the current operating cycle of business (1 year)
  2. b measures a business's ability to pay its long term debt payments- debt to equity- NCPA =66%, lenders prefer low debt-equity ratios: either debt/equity or liabilities/equity (financial leverage)
  3. c revenues are recognized in the period during which goods are delivered and services rendered (used by pharmacies)
  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 5 topics ratio analysis covers

5 Multiple choice questions

  1. NI% x ATO x financial leverage
  2. Can th efirm pay its shrot-term debts as they come due
  3. cost to the seller of all products sold. Total of invoice costs to the business less any discounts received
  4. costs that business incurs to make sales or earn revenue (salaries, rent, utilities)
  5. Revenues, COGS, gross margin, operating expenses, depreciation expense, net income

5 True/False questions

  1. Retained earningscash invested into the business by owners (common/capital stock)

          

  2. Accountinga specialized language used to communicate financial statements

          

  3. external benchmarkingcomparison of the present year's ratios with those fo rpast years identifies trends, it indicates whether the pharmacy's financial performance is improving or deteriorating

          

  4. internal benchmarkingcomparison of the present year's ratios with those fo rpast years identifies trends, it indicates whether the pharmacy's financial performance is improving or deteriorating

          

  5. statement of retained earningstells you how profits are being usedreports how business's retained earnings have changed over a period of time which include dividnet payments or net losses, which decrease retained earnings, net income and additional owner investment which increase retained earnings

          

Create Set