Question 19.

19.(TCO 5) An off balance sheet means that risk(Points : 5)

has not been recorded.

has been recorded in the footnotes.

has been recorded in the balance sheet under all other.

exists on another financial statement.

Question 20.

20.(TCO 5) A high working capital turnover ratio indicates(Points : 5)

that a firm is overcapitalized.

an unprofitable use of working capital.

that a firm is undercapitalized.

None of the above

Question 21.

21.(TCO 5) Investments classified as marketable securities should be(Points : 5)

temporary.

long-term.

permanent.

None of the above