Question

The ration that indicates how many dollars of current assets exist for every current dollar in...

The ration that indicates how many dollars of current assets exist for every current dollar in current liabilities is

Gross margin

ROA

Current

ROE

Which of the following is an operating performance ratio?

Gross margin

Debt-to-equity

Current ratio

None of the above

If net sales are 120 and average total assets are 100 than the asset turnover ratio is

80

1.2

1.0

1.1

Decreases in liability accounts are on which side of the T account

Left

Right

Neither a or b

Asset accounts typically have a

Left hand side balance

Right hand side balance

Neither a or b

Rockport LLC has PP and E (net0 of 250 on 12/31/15 and 190 on 12/31/14. Depreciation for 2015 is 200. Acquisitions net of disposition for 2015 is

250

260

270

280

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Homework Answers

Answer #1

Gross margin = gross profit/total sales
ROA= NI/Average assets
ROE= NiITotal equity
Current ratio= Total assets/total liabilities
Hence current is the correct answer

Gross margin is a profitability ratio, debt equity ratio is capital structure ratio, current ratio is liquidity ratio
Hence none of the above is correct oprion

asset turnover ratio= net sales/average assets= 120/100=1.2

Decreases in liability are payments or debit which shall be on left side of T account


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