Question Details

Profitability ratios assess the ability of a company 




True or false:
1.	When computing the quick ratio, a short-term note receivable would be included.

	
	2.	Jill's Market has an inventory turnover of 120 times. Scott's Market has a turnover of 128 times. Scott's is more effective in managing inventory.

	
	3.	Profitability ratios assess the ability of a company to meets its long- and short-term obligations.



	4.	The dividend payout ratio is equal to common dividends divided by (Net Income  Preferred Dividends).

	
	5.	Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.





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