23. The Dupont model breaks down ROE into three parts, or drivers. Which of the following is NOT one of the drivers? a. Profitability b. Activity c. Liquidity d. Leverage 24. To calculate the cash conversion cycle, begin with average days to collect receivables and: a. Subtract average days in inventory and subtract average days payables outstanding b. Subtract average days in inventory and add average days payables outstanding c. Add average days in inventory and add average days payables outstanding d. Add average days in inventory and subtract average days payables outstanding 25.Creditors are primarily concerned with which of the following: i. Profitability ii. Liquidity iii. Solvency a. i b. i and ii c. ii and iii d. i, ii, and iii 26. Which of the following is a true statement regarding horizontal and vertical analysis? a. Vertical analysis examines financial statement information across time. b. Horizontal analysis is also known as common size analysis. c. When calculating amounts under vertical analysis, the base amount for the balance sheet is typically total assets. d. When calculating amounts under horizontal analysis, the base period is the most recent year presented. 27. Which of the following is NOT a true statement regarding non-GAAP financial measures? a. They may appear in the notes to the financial statements. b. They must be reconciled to the closest GAAP measure. c. They are not presented in accordance with GAAP. d. They provide information to financial statement users that management would like to convey.