Question 12pts

A ______________ standardizes items on the income statement and balance sheet as a percentageof total sales and total assets, respectively.

Group of answer choices

tax reconciliation statement

statement of cash flows

common-base year statement

common-size statement

Flag question: Question 2Question 22pts

Return on equity will increase if the ___________.

Group of answer choices

profit margin decreases

return on assets increases

debt-equity ratio decreases

accounts receivable turnover increases

total asset turnover decreases

Flag question: Question 3Question 32pts

Ratios that measure how efficiently a firm's management uses its assets in operations to generate bottom line net income are known as ______.

Group of answer choices

asset management ratios

long-term solvency ratios

short-term solvency ratios

profitability ratios

Flag question: Question 4Question 42pts

Golf Inc. and Golfanatics Corp. are close competitors. Last year, both had the same level of cost of goods sold, but Golf Inc. turned its inventory over five times during the year, whereas Golfanatics turned its inventory over every 65 days. If the objective is to keep low inventory, which of the following is true?

Group of answer choices

Golf Inc., did a better job because its inventory turnover was lower.

Golfanatics did a better job because its inventory turnover was higher.

Golf Inc., did a better job because its days sales in inventory was lower.

Golf Inc., did a better job because its level of inventory was lower.

Flag question: Question 5Question 52pts

_____________ refers to the difference between a firm's current assets and its current liabilities.

Group of answer choices

Operating cash flow

Net working capital

Cash flow from assets

Cash flow to creditors

Flag question: Question 6Question 62pts

Financial leverage refers to ______.

Group of answer choices

the amount of debt used in a firm's capital structure

the ratio of retained earnings to shareholders' equity

the ratio of paid-in surplus to shareholders' equity

the ratio of cost-of-goods-sold to total sales

The amount of receivables present in the firm's asset structure.

Flag question: Question 7Question 72pts

The purchase and sale of securities after the original issuance occurs in the ______.

Group of answer choices

primary market

dealer market

auction market

secondary market

liquidation market

Flag question: Question 8Question 82pts

The primary goal of financial management is to ______.

Group of answer choices

maximize current sales

avoid financial distress

minimize operational costs

maximize the current value per share of the existing stock

maintain steady earnings growth