As we look at how a companys ratios have changed over time we need to consider all of these except:

Question 1 options:

a)	The companys industry

b)	The direction the values have moved

c)	The impact of inflation

d)	None of the above

Question 2 (2 points)

Increasing a companys inventory levels would do which of the following?

Question 2 options:

a)	Widen the gap between the current and quick ratios

b)	Close the gap between the current and quick ratios

c)	Have no impact on the current or quick ratios

d)	We dont have enough information to decide

Question 3 (2 points)

If a companys current assets increase, what might we assume about their inventory levels?

Question 3 options:

a)	It increased

b)	It decreased

c)	It stayed the same

d)	We dont have enough information to decide

Question 4 (2 points)

The most conservative approach to measuring a companys ability to pay short-term liabilities is their:

Question 4 options:

a)	Profit margin

b)	Current ratio

c)	Quick ratio

d)	Debt to total assets

Question 5 (2 points)

All else holding the same, an increasing in net income will

Question 5 options:

a)	Decrease the profitability ratios

b)	Increase the profitability ratios

c)	Have no impact

d)	Cannot be determined