Pick it fast

Exercise and reference answers

Questions

1. Question

   Which ratio leaves inventory out?

   Choices

   1. Quick ratio
   2. Current ratio

   Correct choice

   Quick ratio

2. Question

   Gross working capital equals which total?

   Choices

   1. Total revenue
   2. Current assets

   Correct choice

   Current assets

3. Question

   Net 30 means payment due within how long?

   Choices

   1. 30 days
   2. 30 weeks

   Correct choice

   30 days

4. Question

   Who grants trade credit?

   Choices

   1. The auditor
   2. The vendor

   Correct choice

   The vendor

5. Question

   Negative working capital means liabilities are:

   Choices

   1. Greater
   2. Smaller

   Correct choice

   Greater

6. Question

   Days of inventory is another name for what period?

   Choices

   1. Payroll settlement
   2. Inventory conversion

   Correct choice

   Inventory conversion

Instructions

Tap the right answer before the timer runs out.

Explanation