1/ Given the following data: sales $1,500,000; gross profit $640,000; net income after tax $40,000...
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Accounting
1/ Given the following data: sales $1,500,000; gross profit $640,000; net income after tax $40,000 and income tax expense $35,000. What is the common-size percentage for operating expenses?
37.7%
42.7%
95.0%
97.3%
2/ To best interpret the accounts receivable turnover ratio, the days in accounts receivable should be compared to the company's
inventory turnover.
sales revenue.
credit terms.
accounts receivable balance.
3/ The quick ratio will be negatively impacted by
tying up cash in inventory.
increasing accounts receivable.
decreasing the level of prepaid accounts.
increasing levels of long term debt.
4/ Which of the following depicts the current ratio?
(current assets inventory) current liabilities
currents assets total assets
(current assets inventory) total assets
current assets current liabilities
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