QUESTION 4: Benchmarking refers to the writing off of failed assets. True False QUESTION 5: For...

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Question

QUESTION 4: Benchmarking refers to the writing off of failed assets. True False QUESTION 5: For...

QUESTION 4: Benchmarking refers to the writing off of failed assets.

True

False

QUESTION 5: For firms with inventory, the current ratio will be larger than the quick ratio.

True

False

QUESTION 6: Which of these measures the degree to which the firm uses debt?

		the current ratio
		the times interest earned
		the equity multiplier
		all of these

business finance

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Answer 1

Answer #1

4. FALSE

Benchmarking is the process of measuring performance against performance of best in the industry.

5. TRUE

Current ratio = Current assets/Current liabilities

Quick ratio = (Current assets-Inventory)/Current liabilities

6. the equity multiplier

Equity multiplier = Total Assets/Equity

Equity multiplier indicates use of debt by a company.

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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Answer 2

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