Question

1. The quick ratio differs from the current current ratio in that accounts receivable are excluded...

1. The quick ratio differs from the current current ratio in that accounts receivable are excluded from current assets.

True

False

2. Fundamental analysis is based on the presumption that the value of a stock is influenced by the financial performance of the issuing company.

True

False

3. A high PEG ratio implies a high growth rate in earnings relative to the​ stock's price.

True

False

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Homework Answers

Answer #1

1. Quick ratio will be different from current ratio because inventory is are to be excluded from current ratios and account receivables will be forming part of both the ratios.

Given statement is FALSE.

2. Given statement about fundamental analysis is TRUE because fundamental analysis is based upon the presumption that the value of stock is influenced by the financial performance.

Given statement is TRUE

3. High PEG RATIO will be indicating that there is a higher market price than the earning of the share and growth rate of the share so it will not be implying higher growth rate in earnings.

Given statement is FALSE.

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