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AFF101 QUIZ 6G INTRODUCTION TO FINANCIAL ACCOUTNING AF101
INTRODUCTION TO FINANCIAL ACCOUTNING (AF101)
The University of the South Pacific
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Financial ratios are used:
Select one:
a. By shareholders to assess profitability
b. All choices given
c. By management for planning and control
d. By creditors to monitor liquidity
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Your answer is correct. The correct answer is: All choices given
Question 2
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Buyer Co has ordered goods on credit from Seller Co. Before Seller ships the goods it would
like to be sure that Buyer will be able to pay for them within the normal credit period. Assuming
Seller has access to Buyer's financial statements, in which of the following ratios will Seller be
most interested?
Select one:
a. Debt ratio
b. Current ratio
c. Dividend yield ratio
d. Price earnings ratio
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Your answer is correct. The correct answer is: Current ratio
Question 3
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Financial stability refers to the ability of an entity to:
Select one:
a. Improve sales
b. Meet its long-term obligations
c. Earn a high rate of profit
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Your answer is correct. The correct answer is: Meet its long-term obligations
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Leverage measures:
The correct answer is: Dividend yield
Question 6
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Schultz Consultancy reports:
Total assets $ 950000 Profit 30000 Current liabilities 285000
If current assets = 60% of total assets Schultz's current ratio is:
Select one:
a. 2 to 3
b. 2 to 1
c. 1 to 2
d. 3 to 2
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Your answer is correct.
The correct answer is: 2 to 1
Question 7
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All of these ratios are indicators of profitability except :
Select one:
a. Profit margin
b. Equity ratio
c. All of these ratios are indicators of profitability except :
d. Earnings per share
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Your answer is correct.
The correct answer is: Equity ratio
Question 8
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The quick ratio (acid test ratio) reflects:
Select one:
a. The relationship of quick assets to fixed assets
b.
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Fricker's financial records reveal this information at 31 December 2009. Net Sales for 2009 $ Cost of Sales for 2009 60000
Ending Inventory 12500 Beginning Inventory 17500 The number of days taken to turn over average inventory for 2009 are:
Select one:
a. 76 days
b. 91 days
c. 61 days
d. 71 days
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Your answer is correct. The correct answer is: 91 days
AFF101 QUIZ 6G INTRODUCTION TO FINANCIAL ACCOUTNING AF101
Course: INTRODUCTION TO FINANCIAL ACCOUTNING (AF101)
University: The University of the South Pacific
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