6) All of the following are Investments on ABC Company's Balance Sheet EXCEPT a) Land held for speculation b) Disney common stock c) General Motors bonds d) Patent 7) The more formal name of the balance sheet is: a) Statement of net worth b) Statement of financial position c) Statement of stockholders' equity d) Statement of financial operations 8) Terms of creditors' lending agreements that restrict management's behavior by requiring management to maintain certain levels of financial ratios are called: a) Debt covenants b) Comparative terms c) Activity restrictions d) Price earnings terms 9) All of the following ratios are senerally used to assess a firm's liquidity EXCEPT: Acid-Test or Quick ratio Current ratio Return on Equity Cash flow per share a) b) c) d) 10) Which of the following pairs of ratios measure the profitability of a company? a) Inventory Turnover and Asset Turnover b) c) d) Dividend Payout and Return on Sales Gross Margin and Return on Sales Price earnings Ratio and Accounts Receivable Turnover a) it is also known as Triple P accounting (People, planet, profit) b) This practice was first developed in the United States c) The Securities & Exchange Commission requires U.S. companies to prepare reports in 11) Which of the following statements is true with respect to sustainability accounting? The idea behind sustainability accounting is that companies should focusfirst and foremost on profits conformance with sustainability standards d) 12) ABC Company has a current ratio of 2:0 to 1 and a quick ratio of 0.7 to 1. If the company borrows from the bank on a short-term note, what will a) Current ratio will decrease; Acid test ratio will decrease b) Current ratio will decrease; Acid test ratio will increase c) Current ratio will increase; Acid test ratio will increase d) Current ratio will increase; Acid Test ratio will decrease