Financial Statements and Types of Ratios

Financial Statements and Types of Ratios

[WLOs: 1, 2, 3] [CLOs: 1, 2, 5]

Prior to taking this quiz,

  • Read Chapter 6: Analyzing Financial Report from Financial Decision Making: An Introduction to Financial Reports.
  • Watch Ratio Analysis: Business Finance Essentials
  • Links to an external site..

The quiz contains five multiple-choice and true or false questions. It is worth 3% of your course grade. You will have 7 hours to complete the quiz, and you must take it in one sitting. You will have one attempt to take this quiz.

Question 1

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1 / 1 pts
Which of the following is a common type of financial report ratio?





Question 2

1 / 1 pts
What is an aging schedule?

Data that shows the manufacturing and expiry date of the products.

Report that shows when customers pay.

Report that shows the debt that the company needs to pay.

Confidential data that need to be destroyed yearly.

Question 3

1 / 1 pts
Which financial ratio(s) do lenders commonly use to make a quick decision about a company’s ability to repay a loan in the next 12 months?

quick ratio and current ratios

turnover ratios

quick ratio

current ratio

Question 4

1 / 1 pts
Which ratios measure whether a company can repay its long-term debt?

Liquidity ratios

Activity ratios

Leverage ratios

Profitability ratios

Question 5

1 / 1 pts
Which one of them is not a limitation of financial ratios?




Industry norms