Question

1. which of the following is not used to measure the efficiency with which a firm uses its assets?

current ratio,

asset turnover,

inventory turnover ratio,

Accounts Receivable turnover ratio

2. f a company has received a payment from the customer, then…

a) it's cash account will be credited

b) accounts receivable would be debited

c) it's cash account will be debited

d) The cash account debit's will see if the cash account credits

3. Projects with a negative net present value will always have a…

a) payback period longer than a useful life of the investment

b) accounting rate of return that is negative

c) series of cash outflows that is greater than the initial cost of the project

d) internal rate of return that is less than the required rate of return

which of the following is not one of the steps in the net present value method?

a) calculate the number of years required to recover the initial investment

b) discounted cash flow's

c) compare the discounted net cash flows to zero

d) identify the amount and timing of the cash flow's

Answer 1

Q1.
Answer is Assets turnover
Explanation:
Assets turnover explains the number of times the assets are converted in to sales revneue.
Thus, shows the efficiency with which the assets are used to generate the revenues.
Q2.
Answer is c. Its cash account will be debited
Explanation:
On receiving the payment, the cash account is debited and accounts receivable is credited for the amount.
Q3.
Answer is d. Internal rate of return is less than the required rate of return.
Q4.
Answer is c. Compared the discounted cash flows to zero.
This is required in case of computation of IRR