a. Present Value b. Future Value c. Time Value of Money d. Interest 15. It is a statement prepared by the entity as part of the matching process which sets out the entries which have caused the difference between the two balances of the bank and the company. - a. P/L Statement b. Balance Sheet c. Bank Recon. Statement d. Cash Flow St. 16. The formula for gross profit is a. Net Sales - CGS or cost of goods sold c. Gross Sales - Returns and Allowances b. Cost of Good - Purchases d. Gross Profit - Operating Expenses 17. What ratio measures the management's overall effectiveness as shown by the returns generated on sales and investment. a. Profitability b. Liquidity c. Activity d. Leverage 18. What ratio measures the firm's ability to meet its current obligations as they fall due. a. Profitability b. Liquidity c. Activity d. Leverage 19. What ratio measures the firm's effectiveness in using its resources a. Profitability b. Liquidity c. Activity d. Leverage 20. The government agency that looks after the welfare of the workers particularly salaries. a DTI b. CHED c. DSWD d. DOLE