Next week I will have same quiz...8 questions Document Preview: 1. Liquidity of a company is generally defined as a measure of: (Points : 2) the ability of a company to pay its employees in a timely...

1. Liquidity of a company is generally defined as a measure of: (Points : 2)       the ability of a company to pay its employees in a timely manner.       the ability to pay interest and principal on all debt.       the ability to pay dividends.       the ability to pay current liabilities. 2. How much would you be prepared to pay for a $500 bond which comes due in 5 years and pays $80 interest annually assuming your required rate of return is 8% (pick closest answer)? (Points : 2)       $740       $660       $608       $500 3. If a company receives an unqualified audit opinion it means the auditors: (Points : 2)       did not complete a full audit and therefore do not feel qualified to give an opinion on financial statements.       are providing assurance that the company will remain financially viable for at least the next year.       are providing assurance that the company's financial statements fairly present company's financial performance and position.       are providing assurance that the company's financial statements are free from misstatement, fraudulent accounting and fairly indicate future performance. 4. Which of the following ratios would be considered useful in assessing operating profitability? (Points : 2)       Debt/Equity ratio       Acid test ratio       Gross profit margin       Return on equity 5. Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity? (Points : 2)       Acid test ratio       Current ratio       Days to collect receivables       Days goodwill held 6. The two primary qualities of accounting information to make it useful for decision making are: (Points : 2)       reliability and comparability.       relevance and reliability.       materiality and comparability.       full disclosure and relevance. 7. Economic income measures change in: (Points : 2)       asset value.       liability value.       shareholder...