50.Whichof thefollowingratiosmeasureshoweffectivelyafirmismanagingits assets? a.quickratio b.timesinterestearned c.profit margin d.inventoryturnoverratio e.priceearningsratio d ANSWER: Easy DIFFICULTY: Inventoryturnoverratio TOPICS: 51.Ifyourgoalisdeterminehoweffectivelya firmismanagingitsassets,whichofthe followingsetsofratioswould youexamine? a.profitmargin,currentratio,fixedchargecoverageratio b.quickratio,debtratio,timeinterestearned c.inventoryturnoverratio,dayssalesoutstanding,fixedassetturnoverratio d.totalassetsturnoverratio,priceearningsratio,returnontotalassets e.timeinterestearned,profitmargin,fixedassetturnoverratio c ANSWER: Easy DIFFICULTY: Assetmanagementratios TOPICS: 52.Whichof thefollowingratiosmeasurestheextenttowhichoperatingincomecandeclinebeforethefirmisunableto meetitsannualinterestcosts? a.fixedchargecoverageratio b.debtratio c.times-interest-earnedratio d.returnonequity e.profit margin c ANSWER: Easy DIFFICULTY: TIEratio TOPICS:
50.Whichof thefollowingratiosmeasureshoweffectivelyafirmismanagingits assets? a.quickratio b.timesinterestearned c.profit margin d.inventoryturnoverratio e.priceearningsratio ANSWER: d DIFFICULTY: Easy TOPICS: Inventoryturnoverratio 51.Ifyourgoalisdeterminehoweffectivelya firmismanagingitsassets,whichofthe followingsetsofratioswould youexamine? a.profitmargin,currentratio,fixedchargecoverageratio b.quickratio,debtratio,timeinterestearned c.inventoryturnoverratio,dayssalesoutstanding,fixedassetturnoverratio d.totalassetsturnoverratio,priceearningsratio,returnontotalassets e.timeinterestearned,profitmargin,fixedassetturnoverratio ANSWER: c DIFFICULTY: Easy TOPICS: Assetmanagementratios 52.Whichof thefollowingratiosmeasurestheextenttowhichoperatingincomecandeclinebeforethefirmisunableto meetitsannualinterestcosts? a.fixedchargecoverageratio b.debtratio c.times-interest-earnedratio d.returnonequity e.profit margin ANSWER: c DIFFICULTY: Easy TOPICS: TIEratio
Test-Bank-CFIN-4-4th-Edition-Besley.docx