Ratio evaluation entails financial statements in order to appraise a firm"s financial position and also stamina.A. TrueB. False
The existing ratio and inventory turnover ratios both help us meacertain the firm"s liquidity. The current ratio procedures the relationship of a firm"s current assets to its existing liabilities, while the inventory turnover proportion gives us an indication of how long it takes the firm to convert its inventory to cash.A. TrueB. False
Considered alone, which of the complying with would certainly boost a company"s current ratio?A. An rise in accounts payable.B. An increase in net solved assets.C. An rise in accrued liabilities.D. An increase in notes payable.E. An increase in accounts receivable.

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Amram Company"s present proportion is 1.9. Considered alone, which of the adhering to actions would certainly alleviate the company"s existing ratio?A. Use cash to minimize accounts payable.B. Borrow using momentary notes payable and use the proceeds to minimize accruals.C. Borrow utilizing momentary notes payable and usage the proceeds to minimize irreversible debt.D. Use cash to mitigate accruals.E. Use cash to mitigate short-lived notes payable.
A decrease in a firm"s inventory turnover proportion says that it is regulating its inventory more efficiently and also also that its liquidity place is improving, i.e., it is coming to be more liquid. A. TrueB. False
The inventory turnover and also current ratio are connected. The combicountry of a high present proportion and also a low inventory turnover proportion, family member to industry standards, argues that the firm has actually an above-average inventory level and/or that part of the inventory is obsolete or damaged. A. TrueB. False
You arrangement to analyze the value of a potential investment by calculating the sum of the present values of its intended cash flows. Which of the following would certainly INCREASE the calculated value of the investment?A. The discount rate increases.B. The cash flows are in the develop of a deferred annuity, and also they total to $100,000. You learn that the annuity lasts for 10 years quite than 5 years, thus that each payment is for $10,000 quite than for $20,000.C. The discount rate decreases.D. The riskiness of the investment"s cash flows increases.E. The total amount of cash flows remains the very same, but more of the cash flows are got in the later years and also less are obtained in the previously years.
Starting to invest early for retirement increases the benefits of compound interest. A. TrueB. False
All various other points hosted constant, the existing worth of a offered yearly annuity decreases as the number of periods per year increases.A. True B. False
An investor calls for a 3% boost to purchasing power in order to induce her to lend. She expects inflation to be 2% next year. The nominal price she much charge is about:A. 1%B. 5%C. 2%D. 3%
To measure worth, the idea of time worth of money is usedA. to determine the interemainder rate passist on corporate debt.B. to carry the future benefits and also prices of a project, measured by its meant revenues, earlier to present.C. to carry the future benefits and expenses of a job, measured by its cash flows, ago to present.D. to encertain that supposed future revenues exceed earnings today.
C. to carry the future benefits and also costs of a task, measured by its cash flows, back to present.
From an investor perspective, the bid price presented in most quote solutions represents:A. selling priceB. buying priceC. holding priceD. proft
From an investor perspective, the bid price shown in most quote solutions represents:A. marketing priceB. buying priceC. holding priceD. proft
You setup to buy a new Mercedes four years from currently. Today, a comparable auto costs $82,500. You expect the price of the vehicle to boost by an average of 4.8% per year over the following 4 years. How much will certainly your dream automobile price by the time you are ready to buy it?A. $98,340.00B. $98,666.67C. $99, 571.41D. $99,818.02E. $100, 023.15
Ian is going to receive $20,000 6 years from now. Sunny is going to obtain $20,000 nine years from now. Which one of the following statements is correct if both Ian and Sunny apply a 7 percent discount price to these amounts?A. the existing worths of Ian and Sunny"s monies are equal.B. in future dollars, Sunny"s money is worth even more than Ian"s money.C. in today"s dollars, Ian"s money is worth more than Sunny"s.D. Sunny"s money is worth more than Ian"s money provided the 7% discount price.
Your grandmother invested a lump sum 26 years back at 4.25% interemainder. Today, she provided you the proceeds of that investment which totaled $51,480.79. How much did she originally invest?A. $15,929.47B. $16,500.00C. $17,444.86D. $17,500.00
A pension fund manager invests $10 million in a debt duty that guarantees to pay 8.3% per year for 4 years. What is the future value of this $10 million? Assumes yearly compounding.A. $13,255,585B. $10,730,602C. $12,920,490D. $13,756,686
A pension money manager has the possibility to invest $500,000 for seven years in a debt obligation that promises to pay an annual interemainder rate of 7.1% compounded semieach year. What is the future value of this investment?A. $761,451B. $814,838C. $847,342D. $908,111
If you were a loan officer evaluating a little business crmodify application for a loan and also you wanted to ensure that the applicant has actually even more than adequate cash flow to pay off its existing debt, the applicant"s cash flow to debt ratio would have to be greater thanA. one.B. zero.C. the TIE ratio.D. the interest price of the debt.
On a common-size balance sheet all accounts are expressed as a percentage of:A. sales.B. profits.C. equity.D. full assets.E. none of the above.
When a firm improves (lowers) its average collection period it generally:A. requires extra cash investment in inventory.B. releases cash locked up in accounts receivables.C. does not transform its cash position.D. a firm cannot reduce its inventories.

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Which of the following is NOT a major category on the cash circulation statement?A. cash flows from offering tasks.B. cash flows from operating tasks.C. cash flows from financing activities.D. cash flows from investing activities.
From an investor perspective, the ask price presented in most quote services represents:A. offering priceB. buying priceC. holding priceD. proft
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