#6 Which of the following statements is the most accuarate? ...

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Finance

#6 Which of the following statements is the most accuarate?
a Liquidity ratios measure the ability of the firm to convert its assets into cash quickly and no loss of value.
b Liquidity ratios measure the ability of the firm to convert its revenues into cash.
c Liquidity ratios measure the ability of the firm to convert its debt into cash quickly and no loss of value.
d Liquidity ratios measure the ability of the firm to convert its equity into cash quickly and no loss of value.
#7 Which of the following statements is the most accuarate?
a The Cash Conversion Factor measures the amount of cash tied up in supporting working capital.
b The Cash Conversion Factor measures the amount of cash tied up in supporting fixed assets of the firm.
c The Cash Conversion Factor measures the amount of cash tied up in supporting the long term debt of the firm.
d The Cash Conversion Factor measures the amount of cash tied up in supporting issuance of common stock of the firm.
#8 Which of the following statements is the most accurate?
a The price to book value ratio measures how much the market is willing to pay for $1 of book value.
b The price to book value ratio measures how much the market is willing to pay for $1 of earnings.
c The price to book value ratio measures how much the market is willing to pay for $1 of sales.
d The price to book value ratio measures how much the market is willing to pay for $10 of book value.
#9 Which of the following statements is the most accurate?
a The debt-Equity ratio actually represents the captial structure of the firm.
b The debt-Equity ratio actually represents the cash flow of the firm.
c The debt-Equity ratiois equivalent to the Debt ratio.
d The debt-Equity ratio actually represents the ability of the firm to cover its debt obligations.
#10 ABC Corp has the following data:
Total sales $40,000,000
Days of Receivables 28
Days in year 365
What is the actual accounts receivable amount?
a Accounts receivable = $3,068,493
b Accounts receivable = $400,000,000
c Accounts receivable = $3,086,493
d Accounts receivable = $3,125,678

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