College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Chapter 24, Problem 5MC
To determine
State the measure under which the times interest earned ratio comes.
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Which of the following ratios measures financial leverage? a. The return on assets ratio. b. The inventory turnover ratio. c. The times interest earned ratio. d. The debt to equity ratio.
Which one of the following is a measure of long term solvency?
A. Price earning ratio
B. Profit margin
C. Cash coverage ratio
D. Receivables turnover
E. Quick ratio
Liquidity.
The net profit / sales percentage measures which of the following?
O Return on investment.
O Risk.
Profitability.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following is a solvency ratio? a. Times interest earned. b. Inventory turnover ratio. c. Profit margin. d. Price-earnings ratio.arrow_forwardThe ratio that measures how much an investor is willing to pay for a dollar of earnings is known as a _____________ ratio. A. asset management B. market value C. profitabilityarrow_forwardwhat are liquidity ratios, leverage ratios, profitability ratios, and market measure ratios?arrow_forward
- What is the possible link between the following ratios: (a) profitability and efficiency (b) profitability and liquidity (c) profitability and investment and (d) efficiency and liquidityarrow_forwardA measure of profitability analysis is a. times interest earned. b. cash flow per share. c. quick ratio. d. dividend payout ratio. would d be the right answer for this question?arrow_forwardc. Explain the following Investment ratios and indicate how they are computed:Earnings per share (EPS) and Price/Earnings ratio (P/E).arrow_forward
- Given the formula for each of the following. A. Return on Equity. B. Current Ratioarrow_forwardWhich of the following best describes the current ratio? a) Liquidity ratio b) Debt ratio c) Operating performance ratio d) Efficiency ratioarrow_forwardWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Periodarrow_forward
- Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick ratio O b. Return on Equity O c. Receivables turnover ratio O d. Current ratioarrow_forwardWhich of the following ratios is most useful in evaluating liquidity? ed d out of g ion • A. Return on assets. O B. Debt to equity ratio. C. Return on equity/capital O D. Current ratio.arrow_forwardWhat are the importance of the following financial ratios? Price to earnings ratio. Earnings per share. Return on equity ratio.arrow_forward
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