Basics Beginner: Sources of Company Information

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1.
You can receive company reports through several subscription services.
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True. You receive these reports periodically from subscription services.
2.
A corporation's return on assets can be found in its annual stockholder report.
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True. Among many other data, such as net revenue and net earnings, is return on assets.
3.
Net sales measures a company's liquidity.
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False. Net sales measures a company's total cash and credit sales minus any returns or discounts.
4.
A company's liquidity is measured by dividing its _______ by its _______.
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Current assets/current liabilities. The greater the liquidity, the greater the amount of working capital.
5.
Which financial ratio measures a company's stock value?
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Price-to-earnings ratio. Price-to-earnings ratio measures a company's stock value.