Reference no: EM133140196

Questions -

Q1. A firm has liabilities of 30,000 and owner's capital of 90,000. The percentage of total liabilities to assets is

a. 25 percent

b. 20 percent

c. 50 percent

d. 75 percent

Q2. If long-term liabilities are 300,000 and total assets are 2,100,000, what percentage of total assets are long term liabilities?

a. 7 percent

b. 16.7 percent

c. 12.5 percent

d. 14.3 percent

Q3. Using the vertical analysis for the given accounts, Net Sales 900,000 Cost of Goods Sold 400,000 Gross Profit 500,000 Operating Expenses 200,000 Net Income 300,000 Operating expenses is _______ of sales.

a. 44.4%

b. 22.2%

c. 55.5%

d. 33.3%

4. Using the vertical analysis for the given accounts, Net Sales 900,000 Cost of Goods Sold 400,000 Gross Profit 500,000 Operating Expenses 200,000 Net Income 300,000 The company earns income of _________ for every peso of sales.

a. 0.44

b. 0.22

c. 0.55

d. 0.33

Q5. Using the vertical analysis for the given accounts, Net Sales 900,000 Cost of Goods Sold 400,000 Gross Profit 500,000 Operating Expenses 200,000 Net Income 300,000 The company's gross profit rate is ___________.

a. 44.4%

b. 22.2%

c. 55.5%

d. 33.3%

Q6. The recipient of money in a check.

a. Payee

b. Drawer

c. Drawee

d. Manager

Q7. A check which a bank will not accept and exchange for money or payment because it was written more than six months ago.

a. Stale check

b. Post - dated check

c. Manager's check

d. NSF check

Q8. Indicates the percentage of the company's assets that are financed by debt.

a. Asset Ratio

b. Debt Ratio

c. Equity Ratio

d. Debt to Equity Ratio