If a company revaluates its fixed assets, the current ratio of the company will:

Related Mcqs:

1. In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

   A. Increased cash
   B. Decreased cash
   C. Increased liabilities
   D. Increased equity

2. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

3. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

4. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

5. The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?

   A. 0.0007
   B. 0.0714
   C. 0.05 times
   D. 7.15 times

6. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

   A. 0.025
   B. 0.081
   C. 0.004
   D. 4 times

7. The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?

   A. 22275
   B. 0.1571
   C. 0.01925
   D. 1.925 times

8. The difference between current assets and current liabilities is known as____________?

   A. Surplus Asset
   B. Short-term Ratio
   C. Working Capital
   D. Current Ratio

9. A company having a current ratio of 1 will have __________ net working capital.

   A. Positive
   B. Negative
   C. zero
   D. None of the given options

10. A company having a current ratio of 1 will have ________ net working capital.

    A. Positive
    B. Negative
    C. zero
    D. None of the given options