1. Which of the following accounts would not be considered when calculating the

ID: 2453053 • Letter: 1

Question

1. Which of the following accounts would not be considered when calculating the quick ratio?

a)Marketable securities.

b)Inventory.

c)Accounts receivable.

d)Accounts payable.

Which of the following is not an advantage of issuing bonds versus issuing stock to finance expansion?

Stockholders remain in control as bondholders cannot vote or share in the company's earnings.

Interest expense is tax deductible but dividends are not.

Money can usually be borrowed at a lower rate and then invested to earn a higher return on assets.

The fixed payment dates for the interest and maturity value.

Stockholders remain in control as bondholders cannot vote or share in the company's earnings.

Interest expense is tax deductible but dividends are not.

Money can usually be borrowed at a lower rate and then invested to earn a higher return on assets.

The fixed payment dates for the interest and maturity value.

1. Which of the following accounts would not be considered when calculating the quick ratio?

b)Inventory.

Note : Quick Ratio = (Total Current Asset-Inventory - Prepaid Expenses)/Current Liability

Total Current Asset include Marketable securities,Accounts receivable, cash

Current Liability include Accounts payable

2) Which of the following is not an advantage of issuing bonds versus issuing stock to finance expansion?

d)The fixed payment dates for the interest and maturity value

Note : Flexibility of Payment would not be an advantage of issuing bonds versus issuing stock to finance expansion

All other are an advantage of issuing bonds versus issuing stock to finance expansion,

Bondholder cannot vote or share in the company earning

Interest expense is tax deductible but dividend are not

Money can usually be borrowed at a lower rate and then invested to earn a higher return on assets.

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