Question 1

A cash budget helps you:

Accepted Answer

A) monitor and control your finances. 
B) analyze your financial position. 
C) calculate your fixed assets ratio. 
D) calculate your investment turnover ratio. 
E) analyze the use of debt in a capital structure.

Question 2

Which of the following ratios indicates your ability to meet current debt payments with existing assets that can be converted to cash readily?

Accepted Answer

A) Solvency 
B) Liquidity 
C) Cash 
D) Savings 
E) Debt service

Exam 2: Using Financial Statements and Budgets

A cash budget helps you:

Which of the following ratios indicates your ability to meet current debt payments with existing assets that can be converted to cash readily?