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Which of the following should not be included as an application of the rate of return concept? rate of return measurea the overall Orofitability of the compay a. b. rate of return can be used in planning and controlling busihess operations

Which of the following should not be included as an application of the rate of return concept? rate of return measurea the overall Orofitability of the compay a. b. rate of return can be used in planning and controlling busihess operations

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 4P
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Helping tags: Accounting . . . . WILL UPVOTE, just pls help me answer the following. Thank you. :)
T01 18tructure of the firm Which of the following should not be included as an application of the 1. rate of return concept? a. rate of return measuree the overall orofitability of the company rate of return can be used in plenning and controlling busmess operations C. b. rate of return may be used to arrive at Belling prices or the product lines d. rate of return may be used in planning the asset and equity е. answer not given. 2. Financial statement8 which are reduced to simpler terms by expressing amounts in even thoUBands peso percentages so that the relative importance of each individual account or classification to the total will stand out are called or by reducing peso amounts to 8. Unconverted atatements b. Common size statements C. Statement of cash receipts and disbursements d. Cash-flow analysia Morking capital analysis е. 3, It is the difference between current assets and current liabilities or that portion of total current assets that has been supplied by long- term liabilities and owners. It indicates the capability 6f a bueiness to meet current liabilities and current operations in the future. d. Working capital Return on capital e. Fixed assets 8. mb. Net. working capitel Profit margin C. This tells you what part of each peso of sales the company retained as profit. It is a very handy guide in comparing the earnings of this year with previous years to determine the earnings trend of the company. It is also very valueble in comparing earnings of the company with that of other companies in the same industry. 4. Yield on investment b. Eainings per share of stock Margin of profit Inventory turnover Return on total assets a. C. erid d. е.
Transcribed Image Text:T01 18tructure of the firm Which of the following should not be included as an application of the 1. rate of return concept? a. rate of return measuree the overall orofitability of the company rate of return can be used in plenning and controlling busmess operations C. b. rate of return may be used to arrive at Belling prices or the product lines d. rate of return may be used in planning the asset and equity е. answer not given. 2. Financial statement8 which are reduced to simpler terms by expressing amounts in even thoUBands peso percentages so that the relative importance of each individual account or classification to the total will stand out are called or by reducing peso amounts to 8. Unconverted atatements b. Common size statements C. Statement of cash receipts and disbursements d. Cash-flow analysia Morking capital analysis е. 3, It is the difference between current assets and current liabilities or that portion of total current assets that has been supplied by long- term liabilities and owners. It indicates the capability 6f a bueiness to meet current liabilities and current operations in the future. d. Working capital Return on capital e. Fixed assets 8. mb. Net. working capitel Profit margin C. This tells you what part of each peso of sales the company retained as profit. It is a very handy guide in comparing the earnings of this year with previous years to determine the earnings trend of the company. It is also very valueble in comparing earnings of the company with that of other companies in the same industry. 4. Yield on investment b. Eainings per share of stock Margin of profit Inventory turnover Return on total assets a. C. erid d. е.
This ratio tells whether the compuny's invenlory is Loo high or too low. It tells you how many tines during the year the. average inventory Но of 5. was sold and enables you to compure stock inventories of Lhe with that of olhor comparnies in the same industry. 12. Company Inventory divided by total assels b. 8. Quick assets divided by current liabililies Cost 'of goods sold and expenses divided by current assela d. с. Cost of goods sold divided by net sales Cost of sales divided by average inventory е. 6. How are trade receivables used in the calculation of each of following? 13. Acid test (quick) ratio Numerator b. Receivable turnover Numerator Denominator Denominator Numerator a. Numerator Denominator d. c. Not used 14 If current assets exceed current liabilitíes, payments to creditom made on the last day of the month will Decrease cUrrent ratio. b. Increase current ratio. Decrease net working capital. d. 7. a. C. Increase net working capital. 8. Which of the following ratios measures short-term solvency? Current ratio b. 8. Age of receivables Creditors' eqúity to total assets d. c. Return on inyestment 9. A company has a current ratio of 2 to 1. This ratio will decrease if the company Receives a 5% stock dividend on one of its marketable securities. b. Pays a large account payable which had been a current liability. Borrows cash on a six-month note. d. a. с. Solls merchandise for more than cost and records the sale using the perpetuai-inventory method.
Transcribed Image Text:This ratio tells whether the compuny's invenlory is Loo high or too low. It tells you how many tines during the year the. average inventory Но of 5. was sold and enables you to compure stock inventories of Lhe with that of olhor comparnies in the same industry. 12. Company Inventory divided by total assels b. 8. Quick assets divided by current liabililies Cost 'of goods sold and expenses divided by current assela d. с. Cost of goods sold divided by net sales Cost of sales divided by average inventory е. 6. How are trade receivables used in the calculation of each of following? 13. Acid test (quick) ratio Numerator b. Receivable turnover Numerator Denominator Denominator Numerator a. Numerator Denominator d. c. Not used 14 If current assets exceed current liabilitíes, payments to creditom made on the last day of the month will Decrease cUrrent ratio. b. Increase current ratio. Decrease net working capital. d. 7. a. C. Increase net working capital. 8. Which of the following ratios measures short-term solvency? Current ratio b. 8. Age of receivables Creditors' eqúity to total assets d. c. Return on inyestment 9. A company has a current ratio of 2 to 1. This ratio will decrease if the company Receives a 5% stock dividend on one of its marketable securities. b. Pays a large account payable which had been a current liability. Borrows cash on a six-month note. d. a. с. Solls merchandise for more than cost and records the sale using the perpetuai-inventory method.
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