1. The leverage ratio is the proportion of debts that a bank has compared to its equity/capital.   Please answer one that is most correct   Select one: a. Debt to Equity = Total debt / Shareholders Equity. b. Debt to Capital = Total debt / Capital (debt+equity) c. There are different leverage ratios such as. Debt to Equity = Total debt / Shareholders Equity. Debt to Capital = Total debt / Capital (debt+equity) Debt to Assets = Total debt / Assets.   2. Which of the following amortization methods is most likely to evenly distribute the cost of an intangible asset over its useful life?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. The leverage ratio is the proportion of debts that a bank has compared to its equity/capital.

 

Please answer one that is most correct

 

Select one:
a. Debt to Equity = Total debt / Shareholders Equity.
b. Debt to Capital = Total debt / Capital (debt+equity)
c. There are different leverage ratios such as. Debt to Equity = Total debt / Shareholders Equity. Debt to Capital = Total debt / Capital (debt+equity) Debt to Assets = Total debt / Assets.
 
2. Which of the following amortization methods is most likely to evenly distribute the cost of an intangible asset over its useful life?
Select one:
a. Units-of-production method.
b. Straight-line method.
c. Double-declining balance method
 
3. What ratio is a cash and marketable securities based (it removes Inventory) ?
Select one:
a. Quick Ratio
b. Current Ratio
c. Dupont Analysis set of ratios
 
4. Which of the following is an appropriate method of computing free cash flow to the firm? 
Select one:
a. Add operating cash flows to after-tax interest payments and deduct capital expenditures.
b. Add operating cash flows to capital expenditures and deduct after-tax interest payments.
c. Deduct both after-tax interest payments and capital expenditures from operating cash flows
 
5. What does the P/E ratio measure? 
Select one:
a. The “multiple” that the stock market places on a company’s EPS.
b. The relationship between dividends and market prices.
c. The earnings for one common share of stock.
 
6. A company chooses to change an accounting policy. This change requires that, if practical, the company restate its financial statements for: 
Select one:
a. All prior periods.
b. Current and future periods.
c. Prior periods shown in a report.
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