Question:What is Ratio of Fixed Assets to Long-term Liabilities?

What is Ratio of Fixed Assets to Long-term Liabilities?

The ratio of fixed assets to long-term liabilities is a leverage ratio that measures the margin of safety of long-term creditors, calculated as the net fixed assets divided by the long-term liabilities.

Accounting, Please help need to double check?

Q: .What type of analysis is indicated by the following?Increase (Decrease*)20102009AmountPercentCurrent assets$ 380,000$ 500,000$(120,000*)(24%)*Fixed assets1,680,0001,500,000180,00012%(Points: 4)Vertical analysisHorizontal analysisLiquidity analysisCommon-size analysis2. An analysis in which all the components of an income statement are expressed as a percentage of net sales is called (Points: 4)vertical analysis.horizontal analysis.liquidity analysis.common-size analysis.3. Statements in which all items are expressed only in relative terms (percentages of a common base) are (Points: 4)horizontal statements.percentage statements.vertical statements.common-size statements.4. Which of the following is NOT included in the computation of the quick ratio? (Points: 4)InventoryMarketable securitiesAccounts receivableCash5. The number of times interest charges are earned is computed as (Points: 4)net income plus interest charges, divided by interest charges.income before income tax plus interest charges, divided by interest charges.net income divided by interest charges.income before income tax divided by interest charges.6. Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? (Points: 4)Ratio of fixed assets to long-term liabilitiesRatio of net sales to assetsNumber of days’ sales in receivablesRate earned on stockholders’ equity7. Which additional report is required of independent auditors since the passage of the Sarbanes-Oxley Act in 2002? (Points: 4)A report assessing the probability that the company will remain in businessA report attesting to management’s assessment of internal controlA report assessing the market value of the company’s current stock priceA report assessing the competency of the company’s board of directors8. Based on the following data for the current year, what is the accounts receivable turnover?Net sales on account during year$ 517,500Cost of merchandise sold during year375,000Accounts receivable, beginning of year50,000Accounts receivable, end of year40,000Inventory, beginning of year110,000Inventory, end of year140,000(Points: 4)12.911.510.356.679. Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept? (Points: 4)adequate disclosure conceptgrowing concern conceptobjectivity conceptbusinessness entity concept10. A list of assestts, liabilities, and owners' equity as of a specific date is a (n) (Points: 4)income statementbalance sheetstatement of cash flowsretained earnings statement11. The sales revenue generated during the normal course of business would be an example of which business activity? (Points: 4)OperatingInvestingFinancingNone of these12. Which of the following is NOT an element of the financial accounting system? (Points: 4)A set of rules for determining the recording of economic eventsA framework for preparing financial statementsA set of rules for the stock exchangeControls to determine whether errors occur during recording13. Current liabilities are usually due within (Points: 4)one month or less.one week or less.one year or less.more than one year.14. subsections, and captions that aid in its interpretation and analysis. (Points: 4)accounting equationretained earnings statementintangible asset sectionclassified balance sheet15. In October, cash is received in advance of rendering services. Assuming that half of the services have been performed by December 31, the year-end adjustment would(Points: 4)decrease Unearned Service Revenue and decrease Cash.increase Accounts Receivable and increase Service Revenue.increase Cash and increase Service Revenue.decrease Unearned Service Revenue and increase Service Revenue.16. Deferred expenses (prepaid expenses) are items initially recorded as assets but are expected to become __________ over time. (Points: 4)Liabilities

A: You need some tutoring.