Quiz Ch 04 – Understanding Financial Ratios and Leverage Effects
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which statement is true about financial ratios and leverage effects?
Which statement is true about financial ratios and leverage effects?
Which of the following statements accurately reflects the relationships between inventory turnover ratio, fixed assets turnover ratio, total debt to total capital ratio, and days sales outstanding (DSO) in assessing a firm’s financial performance?
Which statement accurately describes the relationship between liquidity ratios, inventory turnover, days sales outstanding (DSO), and a firm’s management of current assets?
Which of the following statements accurately explains the relationship between debt utilization and various financial ratios, including operating margin, profit margin, TIE ratio, and risk reduction through financial leverage?
To improve Walter Industries’ current ratio, which of the following actions, considered independently, would be effective?
They give you the number of red balls and green balls in a bag and the number of balls they are pulling out without replacement. They ask you to calculate the probability of pulling two red balls, pulling two green balls, or pulling one of each color.
Your numbers will vary.
They give you a chart of responses within age groups and ask you to complete the contingency table along with calculating the relative frequencies.
Your numbers will vary.
Each year IRS randomly audits tax returns. Ask you to determine the probabilities of different events for the Husband and Wife.
Your numbers will vary.
Asks for intersection probability, what is always equals.