2 Which of the Following Is Not a Financing Ratio

D All of the above. B The current ratio does not include inventories and the quick ratio does.

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A Increase selling price of a stock in trade.

. Has an operating Profit Ratio of 20. C The percentage change in dividends this year compared to last year. B The quick ratio eliminates prepaid expenses for the numerator.

C Increase selling price of a stock in trade and reduce the cost of revenue. Which of the following would NOT improve the current ratio. Ans a Young India Ltd.

Do not round intermediate calculations and round your answers to 2 decimal places eg 3216 b. A The current ratio includes inventories and the quick ratio does not. C Absolute liquid ratio.

The weighted average of the cost of various long-term and short-term sources of finance. B Issue long-term debt to buy inventory. The dividend payout ratio describes.

Issue long-term debt to buy inventory Because this is the only one which will increase current assets without increasing current liabilities. Which of the following would not be considered a source of financing. Sullivan maintains a constant 30 percent dividend payout ratio and a constant debt-equity ratio.

Which one of the following ratios is not a working capital management ratio. Which of the following ratios is not considered to be a test of profitability. Do not round intermediate calculations and round your answers to 2 decimal places eg 3216 c.

Do not round intermediate calculations and round your answers to 2 decimal places eg 3216 c. Register now or log in to answer. C Sell common stock to reduce current liabilities.

The following is a simplified financial statement for Bull-Run. A The Debt-Equity ratio of a company is 1. This financial ratio measures the relative inventory size and influences the cash available to pay liabilities.

D The quick ratio eliminates inventories from the numerator. C The quick ratio eliminates prepaid expenses for the denominator. Which of the following would NOT improve the current ratio.

The current ratio is current assets divided by current liabilities. 2 Obtained a short-term loan from bank Rs 100000. D None of these.

Do not round intermediate calculations and round your answers to 2 decimal places eg 3216 b. The dividend paid on the equity capital. This problem has been solved.

These ratios include current quick cash and operating cash flow. What is the maximum increase in sales that can be sustained assuming no new equity is issued. D Dividends as a percentage of the priceearnings ratio.

B From the following information compute Total Assets to Debt Ratio. 1 Issued equity shares of Rs 100000. Activity ratio is calculated to check.

D None of the above. State with reason which of the following transactions would i increase. A The proportion of earnings paid as dividends.

The debt-to-income ratio DTI is a lending ratio that represents a personal finance measure comparing an individuals debt repayments to his or her gross income. D Sell fixed assets to reduce accounts payable. C The current ratio includes physical capital and the quick ratio does not.

A Borrow short term to finance additional fixed assets. Gross Income Gross income refers to the total income earned by an individual on a paycheck before taxes and other deductions. B A higher current ratio is always preferred to a lower current ratio.

B Efficiency of the business. C Solvency of the business. To maintain this ratio at 25 management may.

Calculate the following financial ratios for each year. View Test Prep - chapter 2 from BUSI 1511 at FPT University. Inventory Turnover Ratio Formula Cost of Goods Sold Average Inventory 6 Debtors or Receivable Turnover Ratio.

A clearly is the answer. Finance questions and answers. A The quick ratio considers only cash and marketable securities as current assets.

What is the difference between the current ratio and the quick ratio. Loan-To-Deposit Ratio - LTD. The cash ratio will tell you the amount of cash a company has compared to its total assets.

D In most industries a current ratio of 20 is considered adequate. B Issue long-term debt to buy inventory. How would the repayment of debt principal be classified.

A Profitability of the business. Do not round intermediate calculations and. Ii decrease or iii not change the ratio.

Types of Lending Ratios. B Reduce the cost of Revenue from operations. It gives you an idea of how well the company can meet its obligations in the next 12 months.

A financial ratio allows us to consider only one measure in isolation and to be able to draw conclusions about how well the company is being run. Financial ratios can be used to compare a firm to its peer firms. The loan-to-deposit ratio LTD is a commonly used statistic for assessing a banks liquidity by dividing the banks total loans by.

Which of the following is NOT TRUE about using financial ratios. A debt-to-equity ratio higher than 1. The following are financial ratios commonly calculated-5 Inventory Turnover Ratio.

B The relationship of dividends per share to market price per share. The cost of capital of a firm is ______________. A Borrow short term to finance additional fixed assets.

D The current ratio does not include. A rate of return on assets exceeding the interest rate on debt. Current Ratio current assets current liabilities.

Prepaid expense Unearned revenue c. Calculate the following financial ratios for each year. The average rate of return it must earn on its.

Because all options do improve the finance section except option a. Do not round intermediate calculations and round your final answer to 2 decimal places. Positive cash flow from financing activities.

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