1. The ratio, sometimes called the "acid test," is a more stringent measure of than the current ratio.

a. quick; liquidity

b. fixed-asset turnover; activity

c. net profit margin; gross profit margin

d. equity, activity

2. Nukin’ Gnats Pest Control is trying to determine its cash flow per share. It has revenue of $50,000, $35,000 of expenses, $4,000 of depreciation and $3,000 of interest expense. The firm is in the 40% tax bracket. The firm has 75,000 shares of common stock outstanding. Its cash flow per share is:

a. $.08

b. $.07

c. $.92

d. $.46