Financial Aspects

Which of the following is not a current asset account?

• Inventory

• Prepaid Insurance

• Equipment

Current assets DIVIDED BY current liabilities is the __________.

• Current Ratio

• Net Worth Ratio

• Working Capital

The quick ratio EXCLUDES which of the following accounts?

• Accounts Receivable

• Inventory

• Cash

The company's current ratio is __________.

• 2.1

• 2.0

• 1.9

The company's quick ratio is __________.

• 1.0

• 2.0

• 0.7

Which of the following will likely have the reported amounts on the balance sheet closest to their current value?

• Current Assets

• Long-term Assets

• Stockholders' Equity

A corporation's excellent reputation will be listed among the corporation's assets on its balance sheet.

• True

• False

The current market value of a corporation is approximately the amount reported on the balance sheet as stockholders' equity.

• True

• False

The quality of a company's earnings are suspect when the company's net income is more than the cash flow from which activities?

• Operating

• Investing

• Financing

Debt ratio = Total liabilities/Total assets

• True

• False