Question 1

The net profit margin is calculated as the firms earnings before interest and taxes divided by net sales.

Accepted Answer

A) True 
 B)False

Question 2

The average collection period is calculated as the year-end accounts receivable divided by the net sales.

Accepted Answer

A) True 
 B)False

Question 3

If a firm's inventories on hand are $200,000,its cost of goods sold is $600,000,and its sales are $800,000,what is the inventory turnover using cost of goods sold?

Accepted Answer

A) 2 times 
B) 3 times 
C) 4 times 
D) 5 times 
A) 2 times 
B) 3 times 
C) 4 times 
D) 5 times

Question 4

The equity multiplier is calculated as:

Accepted Answer

A) total assets divided by owners' equity 
B) net income divided by owners' equity 
C) net income divided by total assets 
D) net sales divided by total assets 
A) total assets divided by owners' equity 
B) net income divided by owners' equity 
C) net income divided by total assets 
D) net sales divided by total assets

Question 5

The quick ratio of a firm with current assets of $300,000,current liabilities of $100,000 and inventory of $100,000 is:

Accepted Answer

A) 1:1 
B) 2:1 
C) 3:1 
D) 4:1 
A) 1:1 
B) 2:1 
C) 3:1 
D) 4:1

Question 6

Which of the following ratios is not a component in the return on equity using Due Pont analysis?

Accepted Answer

A) asset turnover 
B) profit margin 
C) equity multiplier 
D) current ratio 
A) asset turnover 
B) profit margin 
C) equity multiplier 
D) current ratio

Question 7

If a firm's sales are $2,000,000,its cost of goods sold is $1,500,000,and its fixed assets are $1,000,000,what is fixed asset turnover?

Accepted Answer

A) 2.0 times 
B) 1.5 times 
C) 0.5 times 
D) .67 times 
A) 2.0 times 
B) 1.5 times 
C) 0.5 times 
D) .67 times

Question 8

Which of the following is not considered to be a major financial management function?

Accepted Answer

A) financial planning and analysis 
B) asset management 
C) managing the firm's accounting system 
D) raising funds 
A) financial planning and analysis 
B) asset management 
C) managing the firm's accounting system 
D) raising funds

Question 9

A current ratio of 2.0 is desirable and it means that a firm has twice as many current liabilities as current assets.

Accepted Answer

A) True 
 B)False

Question 10

________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.

Accepted Answer

A) Inconclusive 
B) General 
C) Incomplete 
D) Initial 
E) all of the above 
A) Inconclusive 
B) General 
C) Incomplete 
D) Initial 
E) all of the above

The net profit margin is calculated as the firms earnings before interest and taxes divided by net sales.

The average collection period is calculated as the year-end accounts receivable divided by the net sales.

If a firm's inventories on hand are $200,000,its cost of goods sold is $600,000,and its sales are $800,000,what is the inventory turnover using cost of goods sold?

The equity multiplier is calculated as:

The quick ratio of a firm with current assets of $300,000,current liabilities of $100,000 and inventory of $100,000 is:

Which of the following ratios is not a component in the return on equity using Due Pont analysis?

If a firm's sales are $2,000,000,its cost of goods sold is $1,500,000,and its fixed assets are $1,000,000,what is fixed asset turnover?

Which of the following is not considered to be a major financial management function?

A current ratio of 2.0 is desirable and it means that a firm has twice as many current liabilities as current assets.

________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 14: Financial Analysis and Long-Term Financial Planning

The net profit margin is calculated as the firms earnings before interest and taxes divided by net sales.

The average collection period is calculated as the year-end accounts receivable divided by the net sales.

If a firm's inventories on hand are $200,000,its cost of goods sold is $600,000,and its sales are $800,000,what is the inventory turnover using cost of goods sold?

The equity multiplier is calculated as:

The quick ratio of a firm with current assets of $300,000,current liabilities of $100,000 and inventory of $100,000 is:

Which of the following ratios is not a component in the return on equity using Due Pont analysis?

If a firm's sales are $2,000,000,its cost of goods sold is $1,500,000,and its fixed assets are $1,000,000,what is fixed asset turnover?

Which of the following is not considered to be a major financial management function?

A current ratio of 2.0 is desirable and it means that a firm has twice as many current liabilities as current assets.

________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters