Which of the following ratios are intended to address the firm’s financial leverage?

Related Mcqs:

1. Which of the following ratios is NOT from the set of Asset Management Ratios?

   A. Inventory Turnover Ratio
   B. Receivable Turnover
   C. Capital Intensity Ratio
   D. Return on Assets

2. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

   A. Liquidity Ratios
   B. Leverage Ratios
   C. Profitability Ratios
   D. Market Value Ratios

3. The use of Personal borrowing to alter the degree of financial leverage is called__________?

   A. Homemade leverage
   B. Financial leverage
   C. Operating leverage
   D. None of the given option

4. Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?

   A. Return ratios
   B. Market value ratios
   C. Marginal ratios
   D. Equity ratios

5. The ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as _________?

   A. return ratios
   B. market value ratios
   C. marginal ratios
   D. equity ratios

6. Which of the following ratios are particularly interesting to short-term creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

7. Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?

   A. Liquidity Ratios
   B. Leverage Ratios
   C. Profitability Ratios
   D. Market Value Ratios

   Updated by: Anwar Ishfaq

8. Which of the following ratios are particularly interesting to shortterm creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

9. Which of the following ratios are particularly interesting to short term creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

10. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

    A. Rs. 300,000
    B. Rs. 500,000
    C. Rs. 800,000
    D. Rs. 1100,000