Questions from Financial Accounting

Q: Positive financial leverage indicates a. Positive cash flow from financing

Positive financial leverage indicates a. Positive cash flow from financing activities. b. A debt-to-equity ratio higher than 1. c. A rate of return on assets exceeding the interest rate on debt. d. A...

Q: Positive financial leverage indicates a. Positive cash flow from financing

Positive financial leverage indicates a. Positive cash flow from financing activities. b. A debt-to-equity ratio higher than 1. c. A rate of return on assets exceeding the interest rate on debt. d. A...

Q: A company has quick assets of $300,000 and current

A company has quick assets of $300,000 and current liabilities of $150,000. The company purchased $50,000 in inventory on credit. After the purchase, the quick ratio would be a. 2.0 c. 1.5 b. 2...

Q: The inventory turnover ratio for Natural Foods Stores is 14.6

The inventory turnover ratio for Natural Foods Stores is 14.6. The company reported cost of goods sold in the amount of $1,500,000 and total sales of $2,500,000. What is the average amount of inventor...

Q: Given the following ratios for four companies, which company is least

Given the following ratios for four companies, which company is least likely to experience problems paying its current liabilities promptly?

Q: A decrease in selling and administrative expenses would impact what ratio?

A decrease in selling and administrative expenses would impact what ratio? a. Fixed asset turnover ratio. b. Times interest earned ratio. c. Debt-to-equity ratio. d. Current ratio.

Q: California Pizza Kitchen opened its first restaurant in Beverly Hills in 1985

California Pizza Kitchen opened its first restaurant in Beverly Hills in 1985. Almost immediately after the first location opened, it expanded from California to more than 250 locations in more than 3...

Q: A creditor is least likely to use what ratio when analyzing a

A creditor is least likely to use what ratio when analyzing a company that has borrowed funds on a long-term basis? a. Cash coverage ratio. b. Debt-to-equity ratio. c. Times interest earned ratio. d....

Q: A manufacturer reported an inventory turnover ratio of 8.6 during

A manufacturer reported an inventory turnover ratio of 8.6 during last year. This year, management introduced a new inventory control system that was expected to reduce average inventory levels by 25...

Q: The price/earnings ratio provides important information concerning the stock market’s

The price/earnings ratio provides important information concerning the stock market’s assessment of the growth potential of a business. The following are price/earnings ratios for se...