1. Which of the following ratios is most useful in evaluating liquidity?
  2. Answer
  3. Return on assets.
    Return on equity.
    Debt to equity ratio.
    Current ratio.

4 points

Question 2

  1. The current ratio is calculated as:


    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

  1. Excerpts from Stealth Company’s December 31, 2013 and 2012, financial statements are presented below:

    Stealth Company’s 2013 inventory turnover is:


    3.62 times.
    3.96 times.
    4.07 times.
    6.03 times.