Correct answer: (B) Statement of financial position
732. ______________ of a firm refers to the composition of its long -term funds and its capital structure:
Capitalisation
Over Capitalisation
Under Capitalisation
Market Capitalisation
Correct answer: (A) Capitalisation
733. ______________ is the ability of a firm to earn a profit.
Profitability
Liquidity
Efficiency
Effectiveness
Stability
Correct answer: (A) Profitability
734. ______________ is how productively a firm utilizes its assets relative to its revenue and its profits.
Efficiency
Effectiveness
Stability
Liquidity
Profitability
Correct answer: (A) Efficiency
735. ______________ are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control.
Profitability statements
Budgets
Owners' equity statements
Statements of cash flows
Correct answer: (B) Budgets
736. Ratio analysis allows a firm to compare its performance to:
Other firms in the industry
Other time periods within the firm
Other industries
None of the above
Correct answer: (A) Other firms in the industry
737. Which of the following statement is considered as the accountant's snapshot of firm's accounting value as of a particular date?
Income Statement
Balance Sheet
Cash Flow Statement
Retained Earnings Statement
Correct answer: (B) Balance Sheet
738. The ability of a firm to convert an asset to cash is called ______________.
Liquidity
Solvency
Return
Marketability
Correct answer: (A) Liquidity
739. The ______________ is the percentage change in operating income that results from a percentage change in sales.