5. Patents and Copyrights fall under the category of A. Current Assets B. Liquid Assets C. Intangible Assets D. None of Above 6. The long-run objective of financial management is to: A. maximize earnings per share. B. maximize the value of the firm's common stock. C. maximize return on investment. D. maximize market share. 7. Which of the following transactions will improve the Current Ratio? A) Purchase of Goods for Cash. B) Payment to Trade Payables. C) Credit purchase of Goods. D) Cash collected from Trade Receivables. 8. Inventory ratio is a relationship between A. Cost of goods purchased and cost of average inventory. B. Cost of goods sold and cost of average inventory, and cost of goods purchased and cost of average inventory. C. Cost of goods sold and cost of average inventory. D. None of the options is correct 9. Two basic measures of liquidity are A) Current ratio and Quick ratio. B) Gross Profit ratio and Operating ratio. C) Current ratio and Average collection period. D) Inventory turnover and Current ratio. 10. Higher risk is associated with greater probability of higher A. goal. B. Return. C. investment. D. standard deviation. 11. A company can improve (lower) its debt-to-total assets ratio by doing which of the following? A. Borrow more. B. Shift short-term to long-term debt. C. Shift long-term to short-term debt. D. Sell common stock.