You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$$\begin{array} { | l | c | c | c | }
\hline & 2004 & 2005 & 2006 \
\hline \text { Sales } & 100 & 120 & 135 \
\hline \text { Net Income } & 100 & 118 & 128 \
\hline \text { Total Assets } & 100 & 119 & 130 \
\hline
\end{array}$$
-Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity?
A) Acid test ratio
B) Current ratio
C) Days to collect receivables
D) Days goodwill held

Question

You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
 $$\begin{array} { | l | c | c | c | } 
\hline & 2004 & 2005 & 2006 \
\hline \text { Sales } & 100 & 120 & 135 \
\hline \text { Net Income } & 100 & 118 & 128 \
\hline \text { Total Assets } & 100 & 119 & 130 \
\hline
\end{array}$$
-Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity?
A) Acid test ratio
B) Current ratio
C) Days to collect receivables
D) Days goodwill held

Quizplus · Accepted Answer

The Answer is D

You Have Prepared a Trend Series for Company XYZ for Three