1) Which of the following ratios should be used in evaluating the effectiveness with which the company uses its assets?

	Receivables Turnover	Payout Ratio
a.	Yes	Yes
b.	No	No
c.	Yes	No
d.	No	Yes

a) c

b) a

c) b

d) d

2)

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

Acid-Test Ratio	Debt to Total Assets Ratio
a.	No	No
b.	No	Yes
c.	Yes	Yes
d.	Yes	No

a) b

b) d

c) a

d) c

3)

How is the average inventory used in the calculation of each of the following?

	Acid-Test (Quick) Ratio	Inventory Turnover Ratio
a.	Numerator	Numerator
b.	Numerator	Denominator
c.	Not Used	Denominator
d.	Not Used	Numerator

a) c

b) d

c) a

d) b Thank you for your help