Bus333

1. A common-size income statement is an accounting statement that expresses all of a firm's expenses as percentage of: 

A. total assets.

B. total equity.

C. net income.

D. taxable income.

E. sales.

2. The formula which breaks down the return on equity into three component parts is referred to as which one of the following? 

A. equity equation

B. profitability determinant

C. SIC formula

D. Du Pont identity

E. equity performance formula

3. Which one of the following is a source of cash? 

A. increase in accounts receivable

B. decrease in notes payable

C. decrease in common stock

D. increase in accounts payable

E. increase in inventory

4. Which one of the following is a source of cash? 

A. increase in accounts receivable

B. decrease in common stock

C. decrease in long-term debt

D. decrease in accounts payable

E. decrease in inventory

5. On the Statement of Cash Flows, which of the following are considered financing activities?

I. increase in long-term debt

II. decrease in accounts payable

III. interest paid

IV. dividends paid 

A. I and IV only

B. III and IV only

C. II and III only

D. I, III, and IV only

E. I, II, III, and IV

6. According to the Statement of Cash Flows, a decrease in accounts receivable will _____ the cash flow from _____ activities. 

A. decrease; operating

B. decrease; financing

C. increase; operating

D. increase; financing

E. increase; investment

7. An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values. 

A. increase in the cash ratio

B. increase in the net working capital to total assets ratio

C. decrease in the quick ratio

D. decrease in the cash coverage ratio

E. increase in the current ratio

8. An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio? 

A. accounts payable

B. cash

C. inventory

D. accounts receivable

E. fixed assets...