Free CTFA Exam Braindumps (page: 12)

Page 11 of 113

It is actually a method of preparing financial statements in which only transactions involving actual cash outlays are recorded.

  1. Cash basis
  2. Expense
  3. Equity
  4. Cash deficit

Answer(s): A



An excess amount of expense over income resulting in insufficient funds as well as in decreased net value is called:

  1. Cash deficit
  2. Limited Liability
  3. Cash basis
  4. Net worth

Answer(s): A



Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:

  1. Solvency ratio
  2. Liquidity ratio
  3. Savings ratio
  4. Debt service ratio

Answer(s): B



Total net worth divided by total assets; measures the degree of exposure to insolvency is:

  1. Solvency ratio
  2. Liquidity ratio
  3. Savings ratio
  4. Debt service ratio

Answer(s): A






Post your Comments and Discuss ABA CTFA exam with other Community members:

CTFA Exam Discussions & Posts