Free Financial Ratios Questions and Answers

Question 1

A current asset account is not which of the following?

Accepted Answer

Fixtures

Answer

Prepaid Insurance

Answer

Inventory

Question 2

The current asset LESS the current liabilities

Accepted Answer

Working Capital

Answer

Current Ratio

Answer

Net Worth

Question 3

Current resources Amount of current liabilities divided by the

Accepted Answer

Current Ratio

Answer

Net Worth Ratio

Answer

Working Capital

Question 4

Which account is NOT included in the quick ratio?

Accepted Answer

Inventory

Answer

Cash

Answer

Accounts Receivable

Question 5

Working capital for the business is

Accepted Answer

$66,000

Answer

$60,000

Answer

$196,000

Question 6

The current ratio for the business is

Accepted Answer

2.1 : 1

Answer

2.0 : 1

Answer

1.0 : 1

Question 7

The quick ratio of the business is

Accepted Answer

0.7 : 1

Answer

1.0 : 1

Answer

2.0 : 1

Question 8

A company had $830,000 in Sales (all on credit) and $525,000 in Cost of Goods Sold in its most recent fiscal year. Its Accounts Receivable were $80,000 and its Inventory was $100,000 at the beginning of the year. Accounts Receivable were $86,000 and Inventory was $110,000 at the end of the year.
The annual inventory turnover ratio was

Accepted Answer

5. 0

Answer

4.8

Answer

7.9

Question 9

A business had $830,000 in sales (all on credit) and $525,000 in cost of goods sold for the most recent year. It had $100,000 in inventory and $80,000 in accounts receivable at the start of the year. At the end of the year, its inventory was worth $110,000 and its accounts receivable were $86,000.
The ratio of accounts receivable turnover was

Accepted Answer

10. 0

Answer

6.3

Answer

7.5

Question 10

A company's most recent year saw sales of $830,000 (all on credit) and cost of goods sold of $525,000. Its inventory was $100,000 and its accounts receivable were $80,000 at the start of the year. Its inventory was worth $110,000 and its accounts receivable were $86,000 at the end of the year.
How many days' worth of sales were typically in accounts receivable throughout the year?

Accepted Answer

37

Answer

49

Answer

27