• 2022-05-31
    Which of the following statements is most accurate? ( )
    A: Receivable- and inventory-based activity ratios also shed light on the firm's use of financial leverage.
    B: Receivable- and inventory-based activity ratios also shed light on the "liquidity" of these current assets.
    C: Coverage ratios also shed light on the "liquidity" of these current ratios.
    D: Liquidity ratios also shed light on the firm's use of financial leverage.
  • A

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    • 0

      Which of the following statements about inventory accounting is least accurate() A: If a U. S. firm uses LIFO for tax reporting it must use LIFO for financial reporting. B: During periods of rising prices, FIFO based current ratios will be smaller than LIFO based current ratios. C: U.S. GAAP rules require the use lower of cost or market when reporting inventories.

    • 1

      All of the following statements are correct except ______. A: quick ratio is one of the current ratios B: quick ratio is used to measure the liquidity C: quick ratio is a more accurate measurement of liquidity of the current ratio D: quirk ratio is exact the same as the current ratio

    • 2

      Low coverage ratios suggest that a firm has capacity to assume more debt. ( )

    • 3

      What does “shed light on” indicate? It means ______.

    • 4

      The most important factor affecting the credibility of the quick ratio is ( ). A: Liquidity of inventory B: Liquidity of short-term securities C: Liquidity of products D: Liquidity of accounts receivable