What is a government bond which has an indefinite life rather than a specific maturity?
ACoupon
BT-bill
CDebenture
DConsol
ESAS · Question Bank
Engineering Economics
195 of 208 questions match · page 7 of 10. Answer in your head first, then check the solution.
A form of business firm which is owned and run by a group of individuals for their mutual benefit is called _______
Acooperative
Bcorporation
Centerprise
Dpartnership
What is a stock of a product which is held by a trade body or govt as a means of regulating the price of that product?
AStock pile
BHoard stock
CBuffer stock
DWithled stock
The ability to meet debts as they come due is known as ________
Asolvency
Bleverage
Cinsolvency
Dliquidity
What is the basic accounting equation?
AAssets = Liability + Owner's equity
BLiability = Assets + Owner's equity
COwner's equity = Liability + Assets
DOwner's equity = Liability - Assets
The financial health of the company is measured in terms of:
Aliquidity
Bsolvency
Crelative risk
Dall of these
What is an index of short term paying ability?
APrice-earning ratio
BCurrent ratio
CProfit margin ratio
DGross margin
The common ratio is the ratio of:
Anet credit sales to average net receivables
Bcurrent assets to current liabilities
Cgross profit to net sales
Dnet income to owner's equity
What is defined as the current assets minus inventories and prepaid expenses?
AProfit margin ratio
BPrice-earnings ratio
CReturn of investment ratio
DQuick ratio
What is the ratio of the quick assets to current liabilities?
AProfit margin ratio
BPrice-earnings ratio
CReturn of investment ratio
DQuick ratio
Receivables turnover is the ratio of:
Anet credit sales to average net receivables
Bmarket price per share to earnings per share
Ccost of goods to sold to average cost of inventory on hand
Dcommon shareholders' equity to number of outstanding shares
What is the ratio of the net income to owner's equity?
AGross margin
BReturn of investment ratio
CBook value per share of common stock
DInventory turnover
What is the ratio of the market price per share to earnings per share called?
AGross margin
BPrice-earnings ratio
CBook value per share of common stock
DInventory turnover
What is the profit-margin ratio?
AThe ratio of net income before taxes to net sales
BThe ratio of gross profit to net sales
CThe ratio of common shareholders' equity to the number of outstanding shares
DThe ratio of cost goods sold to average cost of inventory on hand
What is a gross margin?
AThe ratio of net income before taxes to net sales
BThe ratio of gross profit to net sales
CThe ratio of common shareholders' equity to the number of outstanding shares
DThe ratio of cost of goods sold to average cost of inventory on hand
Which of the ff is a book value share of common stock?
AThe ratio of net income before taxes to net sales
BThe ratio of gross profit to net sales
CThe ratio of common shareholders' equity to the number of outstanding shares
DThe ratio of cost of goods sold to average cost of inventory on hand
What is an inventory turnover?
AThe ratio of net income before taxes to net sales
BThe ratio of gross profit to net sales
CThe ratio of common shareholders' equity to the number of outstanding shares
DThe ratio of cost of goods sold to average cost of inventory on hand
The average age of receivables is computed using which formula?
A365 / receivable turnover
B365 / average net receivable
C365 / inventory turnover
D356 / average cost of inventory on hand
What is a method of determining when the value of one alternative becomes equal to the value of another?
ASpecific identification method
BAverage cost method
CBreak-even analysis
DIncremental value method
The days supply of inventory on hand is calculated using which formula?
A365 / receivable turnover
B365 / average net receivable
C365 / inventory turnover
D356 / average cost of inventory on hand