Questions in MCQ:

1. On common size income statements, each component, each in the income statement is represented as a percentage of:

a. Net income

b. Net sales

c. Total assets

d. Profit

2. Quick assets include which of the following?

a. Cash, marketable securities and receivables

b. Cas, marketable, securities and inventories

c. Cash, prepaid rent and receivables

d. Market securities, receivables, and inventories

3. All of the following are measures of liquidity except:

a. Quick ratio

b. Debt ratio

c.Current ratio

d. Working capital

4. Generally speaking, which appears to be a desirable current ratio?

a. 20 to 1

b. 1 to 20

c. 2 to 1

d. 1 to 2