"Financial Report"：Understanding Balance Sheets

来源: 正保会计网校编辑：小鞠橘桔 2020/10/10 09:28:31　字体：大小

学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！

Questions 1:

The analytical tool that would be most appropriate for an analyst to use to identify the percentage of a company’s assets that are liquid is the:

A、 cash ratio.

B 、common-size balance sheet.

C 、current ratio.

Questions 2:

Data for a firm are presented in the following table:

Financial Report：Understanding Balance Sheets

The current ratio for the firm’s industry is 3.2. Based on the current ratio, the firm’s liquidity compared with the industry is best described as being:

A、 higher.

B 、equivalent.

C、 lower.

View answer resolution

【Answer to question 1】B

【analysis】

B is correct. A common-size balance sheet expresses all balance sheet accounts as a percentage of total assets and would provide insight into what portion of a company’s assets is liquid. On the other hand, cash and current ratios measure liquidity relative to current liabilities, not relative to total assets.

A is incorrect. The cash ratio is a measure of liquidity relative to current liabilities (but not assets), and it wouldn’t tell you the portion of the company’s assets that are liquid.

C in incorrect. The current ratio is a measure of liquidity relative to current liabilities (but not assets), and it wouldn’t tell you the portion of the company’s assets that are liquid. A common-size balance sheet expresses all balance sheet accounts as a percentage of total assets and would provide insight into what portion of a company’s assets is liq

【Answer to question 2】C

【analysis】

C is correct. The higher the current ratio, the more liquid the company. Thus, with a current ratio of 2.6 (1,800/700), the company is less liquid than the industry, which has a current ratio of 3.2. Current ratio = Current assets/Current liabilities.

Financial Report：Understanding Balance Sheets