14. These ratios measure how efficiently a firm uses its current and fixed assets, as well as how efficiently the firm manages its accounts payable. A. cash

B. quick or acid test

C. asset management

D. internal-growth

E. current

15. Which of the following activities will increase a firm's quick ratio?

A. Sell long-term bonds.

B. Sell equipment to acquire more cash.

C. Convert short-term notes payable into long-term notes payable.

D. All of these actions will increase a firm's quick ratio.

E. B and C, only

16. Which of the following statements is correct?

A. The age of a firm's cash will affect the current ratio level.

B. The age of a firm's fixed assets will affect the current ratio level.

C. The age of a firm's accounts receivable will affect the current ratio level.

D. The age of a firm's fixed assets will affect the fixed asset turnover ratio level.

E. None of the above are correct

17. Which of the following statements is correct?

(x) The debt ratio measures the percentage of total assets financed by debt.

(y) Debt management ratios measure the extent to which the firm uses financial leverage versus equity to finance its assets.

(z) Profitability ratios show the combined effects of liquidity, asset management, and debt management on the overall operation results of the firm.

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (x) only

19. This refers to the amount of debt versus equity a firm has on its balance sheet. A. debt structure

B. financial structure

C. asset management

D. capital coverage

E. capital structure