Long-term liabilities are not due in the current year (from the date of the balance sheet). -
answer✔True
Liquidity has two dimensions which are the ability to: - answer✔quickly convert assets into cash
without significant loss in value
Which of the following is the balance sheet equation? - answer✔Assets equal liabilities plus
stockholders' equity.
Which one of these is considered to be the most liquid? - answer✔Accounts receivable
Current assets __________ (plus/minus) current liabilities equals NWC. - answer✔minus
Financial leverage refers to a firm's _________. - answer✔use of debt in its capital structure
The market value of an item is: - answer✔the cash value you'd get if you sold it
Liquidity refers to the ease of changing _____. - answer✔assets to cash
Current assets are defined as assets that can be turned into cash within ______ months. -
answer✔12
The more debt a firm has, the greater its: - answer✔degree of financial leverage
Net earnings refers to income earned ______. - answer✔after interest and taxes
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