 Which of the following ratios is most useful in evaluating liquidity?
 Answer

Return on assets. Return on equity. Debt to equity ratio. Current ratio.
4 points
Question 2

The current ratio is calculated as:
Answer
Current assets divided by noncurrent assets. Current assets divided by current liabilities. Current liabilities divided by noncurrent liabilities. Current liabilities divided by current assets.
6 points
Question 3

Excerpts from Stealth Company’s December 31, 2013 and 2012, financial statements are presented below:
Stealth Company’s 2013 inventory turnover is:
Answer
3.62 times. 3.96 times. 4.07 times. 6.03 times.