1. Debt Ratio analyzes a business leverage from the standpoint of assets.

The formula is Debt Ratio = Total Liabilities/Total Assets

A number less than one means.

	A.	the business is making money and shouldnt borrow any additional money
	B.	the business is highly leveraged and has borrowed too much
	C.	the business is not highly leveraged and does not borrow too much
	D.	the business is not making money and shouldnt borrow any additional money

2.

The current ratio of 1.2 means..

A.

the current assets are greater than the current liabilities

B.

the current revenue is greater than the current expenses

C.

the current revenue is lower than the current expenses

D.

the current assets are lower than the current liabilities

3.

Statement of Cash Flows for a year is defined by

A.

Beginning cash, plus what you have spent, minus what you received equals ending cash

B.

Beginning cash, plus what you have received, minus what you spent equals ending cash

C.

Beginning cash, minus what you borrowed, plus what you have spent equals ending cash

D.

Beginning cash, minus what you borrowed, plus what you have received equals ending cash

4.

The entity purchasing a bond is called the

	A.	Protector
	B.	Creditor
	C.	Debtor
	D.	Assessor