QUESTION 8: Receivables turnover, inventory turnover and gross margin would be critical measures for what type of firm?

		an electric utility compaany
		a service firm
		a merchandising firm
		an architectural firm

QUESTION 10: The higher the equity multiplier, the better.

True

False

QUESTION 11: The ratio that indicates the firms ability to use assets to generate operating profit is the

		basic earning power
		equity multiplier
		return on equity
		days sales outstanding