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Accounting for Non-Accountants Quiz 8

1. Bankers use current ratios to make short-term loans.

True
False

 

2. Vendors use the quick ratio and inventory turnover to extend credit for purchases.

True
False

 

3. Financial statements can be extremely useful for which of the following reasons?

Evaluating a company's financial statements
Evaluating a company for the last twelve months
Evaluating a company for future growth
All of the Above

 

4. A banker would use which of the following ratios?

Inventory Turnover
Current Ratio
Working Capital
All of the Above

 

5. A business owner would use which of the following ratios?

Inventory Turnover
Current Ratio
Working Capital
All ratios listed in this chapter



Answers

Use the answers below to figure out your score, and see how well you understand the material of the first chapter. If you scored less than an 80% you should read over the chapter again before moving on.

Question 1: True
Question 2: True
Question 3: All of the Above
Question 4: All of the Above
Question 5: All ratios listed in this chapter

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