9. When considering how efficient a company is at using their assets to generate revenues and profits, the best measure is: A. Gross profit margin ratio B. Quick ratio C. Return on investment/assets D. Net profit margin ratio 10. Gross profit margin and net profit margin both use amounts reported only on which financial statement? A. Income statement B. Balance sheet C. Statement of equity D. Cash flows statement 3. The average days in receivables for ABC, Inc. went from 64 in 2019 to 59 in 2020. Which of the following would be a valid explanation for this change? A Inventory is selling more quickly for ABC 8. Accounts receivable turnover increased between 2019 and 2020, ABC, Inc became less liquid in 2020 that they were in 2019, D. ABC should look at how to be more efficient in the collections of A/R so they can turn this around in 2021. 7. Which of the following could be a good reason why inventory turnover could be too high? A. Inventory that is too low could indicate shortages and the inability to satisfy customers B. Companies do not want to move around the inventory in their warehouses too many times C. Inventory that sits too long may need to be sold at a discount to customers D. Obsolete inventory can take place when inventory is held in warehouses for too long. 1. Cash is essential for a business to meet its obligations but it is not very valuable to the business because of the following: A Cash is extremely liquid and easily transferred to others. 8. Cash does not generate very good returns for shareholders C. Cash is not liquid and thus could generate losses when it is used in exchange. D. Cash is mostly electronic in form and thus is never where you need it. - vala? 2. What internal controls might a company put in place to help speed up the collection of accounts recevable? A. Check prices and shipping information to make sure that customers are billed only for what they received at the agreed upon price. B. Check the credit history of new customers to see what their track record is for paying their bills. C. Send reminders to customers about the due dates of their accounts receivable. D. All of the above could be effective internal controls to help speed up collections 1. The RST Company reports on their balance sheet Accounts Receivable of $466 million niet of an allowance of $23 million. What percentage of the total amount owed by customers does RST estimate they will not collect? A491 CA 0.5.2