Which of the following ratios indicates how rapidly the firm's credit accounts are being

collected?

A$)$ Debt ratio

B$)$ Gross profit margin

C$)$ Accounts receivable turnover ratio

D$)$ Fixed asset turnover

Which of the following is the best indicator of management's effectiveness at managing the

firm's balance sheet?

A$)$ Debt ratio

B$)$ Total asset turnover

C$)$ Times$-$interest$-$earned

D$)$ Operating profit margin

Who owns the retained earnings of a public firm?

A$)$ The IRS

B$)$ Common stockholders

C$)$ Bondholders

D$)$ Preferred stockholders

Which of the basic financial statements is best used to answer the questions "What does the

company own and how is it financed?"

A$)$ Balance sheet

B$)$ Statement of shareholder's equity

C$)$ Income statement

D$)$ Cash flow statement

On the income statement, sales revenue, minus cost of goods sold and operating expenses,

equals

A$)$ Net profit.

B$)$ Retained earnings.

C$)$ Net income available to preferred shareholders.

D$)$ Net operating income $($EBIT$).$

Which of the following would NOT be included as a liability in a corporate balance sheet?

A$)$ Notes payable

B$)$ Accounts payable

C$)$ Bonds

D$)$ Accumulated Depreciation.