Please provide a detailed explanation and answers.

Q6

If an analyst wanted to assess an organization's ability to pay its debts, he or she would use which of the following ratios?

A. Times interest earned

B. Average collection period

C. Return on assets (ROA)

D. Earnings per share (EPS)

Q7

The Price-Earnings (PE) ratio provides an indication of:

A. how efficiently the company turned over its assets.

B. whether a company will make money going into the future.

C. whether the stock is a good investment.

D. how expensive the stock is relative to what it earned.

Q8

Which of the following items is in current ratio but not in quick ratio?

A. Cash

B. Accounts receivable

C. Inventory

D. Property, plant, and equipment

Q9

A company reports a profit margin of 12%. In order to determine whether it is good news or bad news, what are TWO places this measure could be compared against?

A. The company's past performance

B. The company's past performance

C. Tell it to a random baby: smile good, frown bad.

D. Tell it to a random baby: smile good, frown bad.

E. Competitors in the same industry

F. Competitors in the same industry

G. Flip a coin: heads good, tails bad