Question Details

Short-term creditors are usually most interested in assessing 



1.	For meaningful analysis, ratios are best compared with
a.	historical company averages.
b.	industrial averages.
c.	historical and industrial averages.
d.	no standard.


	

	2.	Short-term creditors are usually most interested in assessing 
a.	leverage.
b.	liquidity.
c.	marketability.
d.	profitability.


	

	3.	A common measure of liquidity is
a.	return on total assets.
b.	accounts receivable turnover.
c.	return on sales.
d.	debt to equity ratio.


	

	4.	The current ratio is a
a.	liquidity ratio.
b.	profitability ratio.
c.	leverage ratio.
d.	cash flow ratio.


	

	5.	The quick ratio
a.	is used to quickly determine a company's leverage and long-term debt-paying ability.
b.	relates cash, marketable securities, and net receivables to current liabilities.
c.	is calculated by taking one item from the income statement and one item from the balance sheet.
d.	is the same as the current ratio except it is rounded to the nearest whole percent.



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