71) Alpha Enterprise has total current assets of $2,000,000 and total current liabilities of $800,000. If the company collects $100,000 of its accounts receivable, while none of its other assets and liabilities change, its current ratio will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.
72) Alpha Enterprise has total current assets of $2,000,000 and total current liabilities of $800,000. If the company purchases $100,000 of inventory for cash, while none of its other assets and liabilities change, its current ratio will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.
73) Alpha Enterprise has total current assets of $2,000,000 and total current liabilities of $800,000. If the company purchases $100,000 of inventory on account, while none of its other assets and liabilities change, its current ratio will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.
74) Alpha Enterprise has total current assets of $2,000,000 and total current liabilities of $800,000. If the company pays $100,000 of its accounts payable, its current ratio will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.
75) A stock with a high dividend yield appeals to ________.
A) no one
B) all investors
C) investors who hope to profit in the future from a large increase in the market price of the shares that they own
D) investors who need income now to help pay their living expenses
76) A high P/E ratio indicates that ________.
A) a company is highly profitable
B) investors believe that a company has the potential for significant growth
C) the company paid a large dividend compared with its earnings per share
D) a company has high earnings per share
77) The price/earning (P/E) ratio equals the market price of a share of stock divided by that company's earnings per share.
78) The dividend yield ratio equals the market price of a share of stock divided by that company's dividend per share.
79) The accounts receivable turnover ratio is a measure of a company's solvency.
80) Cash from operations to current liabilities measures a company's solvency.