COB 300 B Quiz, 300 Finance Test 1 Questions with Complete Solutions

Return on Assets is Correct Answer-the rate of return generated by the firms assets return on common equity is Correct Answer-the return provided to stockholders (in an accounting sense) Return on invested capital (ROIC) is Correct Answer-the return provided to all suppliers of capital Operating cycle Correct Answer-The length of time it takes for the investment of cash in inventory to be returned in the form of payments from customers The longer the operating cycle Correct Answer-the greater the need for liquidity Current assets generally includes Correct Answer-cash, marketable securities, accounts receivable, and inventories Current liabilities generally includes Correct Answer-accounts payable, accrued wages and taxes, and notes payable Low liquidity ratios are often a sign of Correct Answer-financial difficulties