Question: What is a government bond which has an indefinite life rather than a specific maturity ?

• 1. Coupon
• 2. T-bill
• 3. Debenture
• 4. Consol

Question: A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?

• 1. Cooperative
• 2. Corporation
• 3. Enterprise
• 4. Partnership

Question: What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product ?

• 1. Stock pile
• 2. Hoard stock
• 3. Buffer stock
• 4. Withheld stock

Question: The ability to meet debts as they become due is known as __________________?

• 1. Solvency
• 2. Leverage
• 3. Insolvency
• 4. Liquidity

Question: The ability to convert assets to cash quickly is known as ________________?

• 1. Solvency
• 2. Liquidity
• 3. Leverage
• 4. Insolvency

Question: What is the basic accounting equation ?

• 1. Assets = liability + owner’s equity
• 2. Liability = assets + owners’ equity
• 3. Owner’s equity = assets + liability
• 4. Owner’s equity = liability – assets

Question: The financial health of the company is measured in terms of______________?

• 1. Liquidity
• 2. Solvency
• 3. Relative risk
• 4. All of the above

Question: What is an index of short-term paying ability ?

• 1. Price-earnings ratio
• 2. Current ratio
• 3. Profit margin ratio
• 4. Gross margin

Question: The common ratio is the ratio of_______________?

• 1. Net credit sales to average net receivable
• 2. Current assets to current liabilities
• 3. Gross profit to net sales
• 4. Net income to owner’s equity

Question: What is defined as the current assets minus inventories and prepaid expenses ?

• 1. Profit margin ratio
• 2. Price-earnings ratio
• 3. Return of investment ratio
• 4. Quick ratio