Free Accounting Financial Ratios Questions and Answers

Question 1

The current asset MINUS the current liabilities is.

Accepted Answer

Working Capital

Answer

Current Ratio

Answer

Net Worth

Question 2

Which of the following accounts is NOT included in the quick ratio?

Accepted Answer

Inventory

Answer

Cash

Answer

Accounts Receivable

Question 3

A current asset account is not which of the following?

Accepted Answer

Fixtures

Answer

Prepaid Insurance

Answer

Inventory

Question 4

The current asset value divided by the current liability value is.

Accepted Answer

Current Ratio

Answer

Net Worth Ratio

Answer

Working Capital

Question 5

When a manufacturer's net income exceeds the cash flow from what activities, the quality of its earnings is questioned.

Accepted Answer

Operating

Answer

Financing

Answer

Investing

Question 6

Which of the following balance sheets is most likely to contain reported amounts that are the closest to their actual values?

Accepted Answer

Current Assets

Answer

Long-term Assets

Answer

Stockholders' Equity

Question 7

True or false: Free cash flow is the difference between the cash used for financing activities and the cash provided by operating activities.

Accepted Answer

False

Answer

True