2. One of the following is a liquidity Ratio: A. Fixed charge coverage B. receivable turnover C. Profit margin. D. quick ratio. 7. Accrual method represents A. planned budget B. planned stock control C. Planned salary scale. D. Planned cash flow 3. Taxes are maximum per partner in A. .sole proprietorship B. . partnership C. Corporation. D. Corporate govemance. 8. One of jit disadvantage is A. . reducing warehousing cost B. . elimination of waste C. . reduction of quality control cost High risk with supplier 9. Inventory is A. . minimum liquid asset that should yield a high return B. . significant part of sales C. dramatically increasing the of the firm. D. minimum liquid assets that produce high sales 4. Fluctuation in current assets depends on A. Differences between production and sales levels. B. increasing in production cost. C. increasing in inventory cost. D. Productive capacity increasing, 5. Capital market deals with A. .common and preferred shares B.. cash in hands. C. cash in banks. D. Short-term bonds and securities' 10.Carrying cost is not A.. interest fund ties to inventory B. . purchasing cost C.. shortage risk cost D.. Warehouse space cost 11. Optimal financial management policy is A. Relating current assets with fixed assets B. long term financing and a high degree of liquidity C. short term financing and low degree D. Combining the liquidity of the assets and the needed financing 6. Assets utilization ratios are not including A. average collection period B. debit to total investment ratio C. fixed assets turnover. D. inventory turnover. 12.Quick ratio equals A. (Current inventory- liabilities)/Total assets. B. Current assets-sales) / current I. C. total assets/ (liabilities - debits) D. Current assets - inventory/current liability