The quick acid test ratio contains all of the following except: a

1. The quick acid test ratio contains all of the following except:
   a. cash
   b. accounts receivable
   c. marketable securities
   d. prepaid assets

d

2. All of the following are common industry risks faced by companies except:
   a. litigation
   b. technology
   c. regulation
   d. competition

a

3. All of the following are common domestic risks faced by companies except:
   a. recessions
   b. technology
   c. inflation
   d. demographic shifts

b

4. All of the following are common international risks faced by companies except:
   a. asset expropriation
   b. exchange rate changes
   c. political unrest
   d.dependence on one or a few suppliers

d

5. All of the following typically drive firm-specific risks except:
   a.the nature of the business
   b. competition
   c.supplier relationships
   d.demographic shifts

d

6. Which of the following can companies use as collateral for a loan?
   a. prepaid insurance
   b. prepaid rent
   c. property, plant, and equipment
   d. retained earnings

b

7. Changes in foreign exchange rates can affect a firm in all of the following ways except:
   a. The prices a firm pays to acquire raw materials from suppliers abroad.
   b. The amount of cash a firm receives when it collects an account receivable, a loanreceivable, or another receivable denominated in a currency other than its own.
   c. The value of domestic liabilities with fixed interest rates.
   d. The prices a firm charges for products sold to customers abroad

c

8. Changes in interest rates can typically affect firms in all of the following ways except:
   a. The value of investments in bonds or other investment securities with fixed interest rates.
   b. The value of liabilities with fixed interest rates.
   c. The returns a firm generates from pension fund investments.
   d. The cash-equivalent value of assets invested abroad

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