Q16.
Use the following information to calculate the net liquid balance: Cash and equivalents $10 Accounts receivable = $30, Inventory = $25, Accounts payable $10, Notes payable = $25
a. $-25 b. $-15 c. $35 d.$70
Q17.
Which of the following best characterizes a firm with current assets of $5,000 and current liabilities of $1,000?
A.Liquid B.Solvent C.Insolvent D.Unprofitable
Q18.
which of the following best describes days sales outstanding?
A. average time it takes to collect on a credit sale
B. average length of time inventoried item is in stock before it is sold
C. average length of time it takes to turn a cash outflow into a cash inflow
D. average time between receipt of inventory and collection on a credit sale
Q20.
The ability of a firm to pay its bills on time while remaining a viable entity is referred to as:
A.liquidity
B. solvency
C. cash conversion cycle
D.the net liquidity balance