Question 1

Match the ratio that goes with each formula.
-$\frac {\text { Operating Income }} { \text {Average Operating Assets } }$

Accepted Answer

A) net profit margin 
B) total asset turnover 
C) return on assets 
D) DuPont return on assets 
E) operating income margin
F)operating asset turnover
G)return on operating assets
H)DuPont return on operating assets
I)sales to fixed assets
J)return on investment
K)return on total equity
L)return on common equity
M)gross profit margin 
A) net profit margin 
B) total asset turnover 
C) return on assets 
D) DuPont return on assets 
E) operating income margin
F)operating asset turnover
G)return on operating assets
H)DuPont return on operating assets
I)sales to fixed assets
J)return on investment
K)return on total equity
L)return on common equity
M)gross profit margin

Question 2

Which of the following is not a type of operating asset?

Accepted Answer

A) Inventory 
B) Cash 
C) Land 
D) Long-term investments 
E) Equipment 
A) Inventory 
B) Cash 
C) Land 
D) Long-term investments 
E) Equipment

Question 3

Return on investment measures:

Accepted Answer

A) return to all suppliers of funds. 
B) return to all long-term creditors. 
C) return to all long-term suppliers of funds. 
D) return to stockholders. 
E) return to all short-term suppliers of funds. 
A) return to all suppliers of funds. 
B) return to all long-term creditors. 
C) return to all long-term suppliers of funds. 
D) return to stockholders. 
E) return to all short-term suppliers of funds.

Question 4

Match each term to its best description or definition.
-Common size

Accepted Answer

A) Full or partial statements expressed in percentages of a given base. 
B) Requires full financial statements on a quarterly basis. 
C) All statement figures are expressed as a percentage of a base figure from that year's statement. 
D) A breakdown by major lines of business,only required in SEC reporting. 
E) A breakdown by major lines of business.
F)All statement figures are expressed as a percentage of base-year figures.
G)Requires estimation of some expense items.
H)A comparison of financial data over time.
I)Visual aids to understanding financial data. 
A) Full or partial statements expressed in percentages of a given base. 
B) Requires full financial statements on a quarterly basis. 
C) All statement figures are expressed as a percentage of a base figure from that year's statement. 
D) A breakdown by major lines of business,only required in SEC reporting. 
E) A breakdown by major lines of business.
F)All statement figures are expressed as a percentage of base-year figures.
G)Requires estimation of some expense items.
H)A comparison of financial data over time.
I)Visual aids to understanding financial data.

Question 5

Operating income is:

Accepted Answer

A) net sales less cost of goods sold. 
B) earnings before interest and tax. 
C) earnings before tax and nonrecurring items. 
D) gross profit less operating expenses. 
E) net income plus interest. 
A) net sales less cost of goods sold. 
B) earnings before interest and tax. 
C) earnings before tax and nonrecurring items. 
D) gross profit less operating expenses. 
E) net income plus interest.

Question 6

Operating assets equals:

Accepted Answer

A) cash,accounts receivable,and equipment. 
B) current assets plus tangible assets. 
C) total assets minus intangible assets. 
D) only long-term assets. 
E) only current assets. 
A) cash,accounts receivable,and equipment. 
B) current assets plus tangible assets. 
C) total assets minus intangible assets. 
D) only long-term assets. 
E) only current assets.

Question 7

Match the ratio that goes with each formula.
-$\frac {\text { Net Income Before Noncontrolling Interest and Nonrecurring Items }} { \text {Net Sales} }$

Accepted Answer

A) net profit margin 
B) total asset turnover 
C) return on assets 
D) DuPont return on assets 
E) operating income margin
F)operating asset turnover
G)return on operating assets
H)DuPont return on operating assets
I)sales to fixed assets
J)return on investment
K)return on total equity
L)return on common equity
M)gross profit margin 
A) net profit margin 
B) total asset turnover 
C) return on assets 
D) DuPont return on assets 
E) operating income margin
F)operating asset turnover
G)return on operating assets
H)DuPont return on operating assets
I)sales to fixed assets
J)return on investment
K)return on total equity
L)return on common equity
M)gross profit margin

Match the ratio that goes with each formula. - $\frac {\text { Operating Income }} { \text {Average Operating Assets } }$

Which of the following is not a type of operating asset?

Return on investment measures:

Match each term to its best description or definition. -Common size

Operating income is:

Operating assets equals:

Match the ratio that goes with each formula. - $\frac {\text { Net Income Before Noncontrolling Interest and Nonrecurring Items }} { \text {Net Sales} }$

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 8: Profitability

Match the ratio that goes with each formula. - Operating Income Average Operating Assets \frac {\text { Operating Income }} { \text {Average Operating Assets } }Average Operating Assets Operating Income ​

Which of the following is not a type of operating asset?

Return on investment measures:

Match each term to its best description or definition. -Common size

Operating income is:

Operating assets equals:

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Match the ratio that goes with each formula. - $\frac {\text { Operating Income }} { \text {Average Operating Assets } }$