What is the ratio of the quick assets to current liabilities?
AProfit margin ratio
BPrice-earnings ratio
CReturn of investment ratio
DQuick ratio
ESAS · Question Bank
Engineering Economics
186 questions · page 8 of 10. Answer in your head first, then check the solution.
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
What is defined as the length of time usually in years, for the cumulative net annual profit to equal the initial investment?
AReturn of investment period
BTurnover period
CBreak-even period
DPayback period
What is defined as the ratio of its return to its cost?
AReturn of an investment
BValue of an investment
CBreak even point of an investment
DTerms of an investment
Which of the ff is an accelerated depreciation method?
AStraight line method and sinking fund method
BStraight line method and double declining balance method
CDouble declining balance method and SYD method
DSYD method and sinking fund method
What is an accelerated depreciation method?
AIt is one that calculates a depreciation amount greater than a straight line amount
BIt is one that calculates a depreciation amount lesser than a straight line amount
CIt is one that calculates a depreciation amount equal than a straight line amount
DIt is one that calculates a depreciation amount not in any way related to straight line amount
What refers to the reduction in the level of a national income and output usually accompanied by a fall in the general price level?
ADeflation
BInflation
CDevaluation
DDepreciation
A formal organization of producers within an industry forming a perfect collusion purposely formed to increase profit and block new comers form the industry is called _________
AMonopoly
BCartel
CCorporation
DCompetitors
The paper currency issued by the central bank which forms part of the country's money supply is called ________
AT-bills
Bbank notes
Ccheck
Dcoupon
What is the ratio of the net income to owner's equity?
AReturn on investment
BInventory turnover
CProfit margin
DPrice-earnings
What refers to the buying or selling of goods between two or more markets in order to take profitable advantage of any differences in the prices quoted in these markets?
ACartel
BArbitage
CBlack Market
DA priori