Podcast
Questions and Answers
What does a liquidity ratio measure?
What does a liquidity ratio measure?
- A company's ability to pay off its maturing liabilities (correct)
- A company's market value
- A company's asset management
- A company's ability to generate profits
What is the most commonly used measure of short-term solvency?
What is the most commonly used measure of short-term solvency?
- Profitability Ratio
- Current Ratio (correct)
- Quick Ratio
- Debt Management Ratio
What is typically included in current assets?
What is typically included in current assets?
- Accounts payable and short-term notes payable
- Accrued taxes and other accrued expenses
- Long-term debt and accrued expenses
- Cash, marketable securities, accounts receivable, and inventories (correct)
What happens to the current ratio if current liabilities are rising faster than current assets?
What happens to the current ratio if current liabilities are rising faster than current assets?
What do creditors like to see in a company's current ratio?
What do creditors like to see in a company's current ratio?
How is the current ratio assessed?
How is the current ratio assessed?
What is the rate paid on the last dollar of income?
What is the rate paid on the last dollar of income?
What happens when an asset is sold for more than its book value?
What happens when an asset is sold for more than its book value?
How many years can an ordinary corporate operating loss be carried back?
How many years can an ordinary corporate operating loss be carried back?
What happens to shareholders' returns if a firm's assets generate a higher pre-tax return than the interest rate on debt?
What happens to shareholders' returns if a firm's assets generate a higher pre-tax return than the interest rate on debt?
What is the purpose of Section 43 of the Corporation Tax Code of the Philippines?
What is the purpose of Section 43 of the Corporation Tax Code of the Philippines?
What is the limit for carrying forward an ordinary corporate operating loss?
What is the limit for carrying forward an ordinary corporate operating loss?
What is the primary consequence of a company having high leverage?
What is the primary consequence of a company having high leverage?
What happens to an operating loss in 2016 after carrying back to preceding 2 years?
What happens to an operating loss in 2016 after carrying back to preceding 2 years?
What is the main purpose of Leverage Ratios?
What is the main purpose of Leverage Ratios?
What is the primary purpose of creating common size financial statements?
What is the primary purpose of creating common size financial statements?
What does the Debt-to-Asset Ratio (Debt Ratio) represent?
What does the Debt-to-Asset Ratio (Debt Ratio) represent?
What is the result of a small decline in performance for a company with high leverage?
What is the result of a small decline in performance for a company with high leverage?
What does a percentage change analysis show on a balance sheet?
What does a percentage change analysis show on a balance sheet?
What is the term for the extent to which a firm uses debt financing?
What is the term for the extent to which a firm uses debt financing?
What is the result of the DuPont equation?
What is the result of the DuPont equation?
What is used in the DuPont equation as a measure of financial leverage?
What is used in the DuPont equation as a measure of financial leverage?
Which type of analysis displays line items as a percentage of one selected or common figure?
Which type of analysis displays line items as a percentage of one selected or common figure?
What are the two ratios used in the DuPont equation as measures of profitability and asset efficiency?
What are the two ratios used in the DuPont equation as measures of profitability and asset efficiency?
What is the formula for calculating interest?
What is the formula for calculating interest?
What is the effect of compounding interest?
What is the effect of compounding interest?
If interest is compounded quarterly, what is the multiplier for time?
If interest is compounded quarterly, what is the multiplier for time?
What is an ordinary annuity?
What is an ordinary annuity?
What is the future value of an annuity due?
What is the future value of an annuity due?
What is the main difference between the future value of an ordinary annuity and an annuity due?
What is the main difference between the future value of an ordinary annuity and an annuity due?
