#1 In looking at financial data, which would be of most concern to you as an independent financial analyst?

• A. ROE that is above 15%
• B. Current ratio that is above 2.00X
• C. Debt-to-Total Assets that is more than 50%
• D. Times interest earned below 0.80
• E. Net margin that is less than 5%

#2 From highest to lowest, which is the correct list of liquidity?

• A. fiat, crypto, barter, commodity
• B. barter, commodity, crypto, fiat
• C. crypto, fiat, commodity, barter
• D. commodity, crypto, barter, fiat
• E. fiat, barter, commodity, crypto

#3

Which statement is false?

• A. A company can have positive net income and negative free cash flow.
• B. Capital expenditures are recognized in the year of occurrence on the income statement of a corporation.
• C. An increase in net operating working capital from one period to the next decreases free cash flow.
• D. Salvage value can be negative or positive.