JWMI 530 Financial Management I Knowledge Check 2 Quiz | Updated Summer 2025/2026 | Answered Correctly.

JWI 530 Knowledge Check 2 QUESTION 1 The balance sheet has two sections. In a side-by-side presentation: Assets Liabilities are on the left Assets Liabilities are on the right 0.4 points QUESTION 2 ...

JWI 530 Knowledge Check 2 QUESTION 1 The balance sheet has two sections. In a side-by-side presentation: Assets Liabilities are on the left Assets Liabilities are on the right 0.4 points QUESTION 2 Match each balance sheet category with the correct corresponding account types. - A. B. C. Assets - A. B. C. Liabilities - A. B. C. Equity A. Loans, accounts payable, mortgages, and deferred/prepaid revenues B. Cash, accounts receivable and inventory, equipment, buildings, real estate C. Common stock, preferred shares, paid-in capital, retained earnings, treasury stock 0.4 points QUESTION 3 Financial Statements like the Balance Sheet are required to have standard titles and formats. Match the correct phrases - in the correct sequence - with the 3 lines on a Balance Sheet for "Company ABC": - A. B. C. D. E. F. Line 1: - A. B. C. D. E. F. Line 2: - A. B. C. D. E. F. Line 3: A. Balance Sheet B. Balance Sheet of Company ABC C. As of 12/31/2015 D. For the Year ended 12/31/2015 E. In accordance with US GAAP F. Company ABC 0.4 points QUESTION 4 Match each term with the correct definition. - A. B. C. D. Liquidity - A. B. C. D. Insolvency - A. B. C. D. Leverage - A. B. C. D. Write-off A. The ability to meet current obligations with cash or other assets that can be quickly converted to cash in order to pay bills as they come due. B. The ability to use borrowed money to put into a business. C. Not having enough money to pay the bills as they come due. D. Removing an amount from the balance sheet. 0.4 points QUESTION 5 Based on the balance sheet, what type of organization is this? Balance Sheet Cash & Equivalents 33 Accounts Payable 115 Accounts Receivable 50 Salaries Payable 25 Inventory 120 ST portion of Long Term Debt 200 Current Assets 203 Total Current Liabilities 340 Store & HQ Building 750 Long Term Debt 200 Less Accumulated Depreciation -250 Long Term Assets 500 Common Stock 100 Retained Earnings 83 Other Assets 20 Total Assets 723 Total Liabilities and Equity 723 Manufacturer Services Retailer 0.4 points QUESTION 6 If the annual credit sales are $600, what is the average payment time from customers? Balance Sheet Cash & Equivalents 33 Accounts Payable 115 Accounts Receivable 50 Salaries Payable 25 Inventory 120 ST portion of Long Term Debt 200 Current Assets 203 Total Current Liabilities 340 Store & HQ Building 750 Long Term Debt 200 Less Accumulated Depreciation -250 Long Term Assets 500 Common Stock 100 Retained Earnings 83 Other Assets 20 Total Assets 723 Total Liabilities and Equity 723 1 month 1 week 60 days 12 days 0.4 points QUESTION 7 Calculate the Total Debt to Equity Ratio. * Refer to the Ratio Reference Guide Balance Sheet Cash & Equivalents 33 Accounts Payable 115 Accounts Receivable 50 Salaries Payable 25 Inventory 120 ST portion of Long Term Debt 200 Current Assets 203 Total Current Liabilities 340 Store & HQ Building 750 Long Term Debt 200 Less Accumulated Depreciation -250 Long Term Assets 500 Common Stock 100 Retained Earnings 83 Other Assets 20 Total Assets 723 Total Liabilities and Equity 723 2.95 1.35 2.0 1.1 0.4 points QUESTION 8 Calculate the Quick Ratio. * Refer to the Ratio Reference Guide Balance Sheet Cash & Equivalents 33 Accounts Payable 115 Accounts Receivable 50 Salaries Payable 25 Inventory 120 ST portion of Long Term Debt 200 Current Assets 203 Total Current Liabilities 340 Store & HQ Building 750 Long Term Debt 200 Less Accumulated Depreciation -250 Long Term Assets 500 Common Stock 100 Retained Earnings 83 Other Assets 20 Total Assets 723 Total Liabilities and Equity 723 0.22 0.75 0.76 0.24 0.4 points QUESTION 9 This organization will likely have difficulty paying its debts this fiscal year. Balance Sheet Cash & Equivalents 33 Accounts Payable 115 Accounts Receivable 50 Salaries Payable 25 Inventory 120 ST portion of Long Term Debt 200 Current Assets 203 Total Current Liabilities 340 Store & HQ Building 750 Long Term Debt 200 Less Accumulated Depreciation -250 Long Term Assets 500 Common Stock 100 Retained Earnings 83 Other Assets 20 Total Assets 723 Total Liabilities and Equity 723 True False 0.4 points QUESTION 10 Select all that apply. The Inventory account on the balance sheet indicates: An asset with an inherent risk of deterioration, obsolescence, and breakage. A healthy, growing business if it's a large account. Production materials and products held by the company until sold. A need to sensitively manage manufacturing processes, warehousing, consumer demand, and competition.