The Subsequent Questions in a Series Are Called Contingency Questions

question 83

True/False

The subsequent questions in a series are called contingency questions.

Calculate and assess a company's return on assets and equity.

Understand the financial metrics related to company's operation cycle.

Compute and interpret times interest earned ratio.

Determine a company's book value per share and its implications.

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Definitions:

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Current Liabilities

Obligations that will come due within one year or within the operating cycle, whichever is longer.

Common-Size Income Statement

A common-size income statement presents all line items as a percentage of revenue, allowing for easier comparison across companies and time periods by standardizing financial statements.