1. Market ratios can answer all the following except:

a. Short term return expectations on investment

b. How well the company has rewarded investment in prior accounting periods

c. Amount of income earned per share of stock

d. Market expectations of future profitability

2. Which of the following does not accurately describe the acid test ratio?

a. A more conservative look at the companys ability to meet current liabilities by focusing only on cash and cash equivalents as they relate to current liabilities

b. Tells us how many times the company can meet its current liabilities with all current asset in consideration

c. Answers the question If we do not make another sell, how well positioned are we to meet our current obligations?

d .Is also referred to as the quick ratio