Question 1

Which financial ratio measures the utilization of all of the company's assets?

Accepted Answer

A)  days of inventory 
B)  asset turnover 
C)  inventory turnover 
D)  fixed asset turnover 
E)  average collection period 
A)  days of inventory 
B)  asset turnover 
C)  inventory turnover 
D)  fixed asset turnover 
E)  average collection period B

Question 2

Which of the following financial ratios is not a profitability ratio?

Accepted Answer

A)  net profit margin 
B)  gross profit margin 
C)  asset turnover 
D)  ROE 
E)  ROI 
A)  net profit margin 
B)  gross profit margin 
C)  asset turnover 
D)  ROE 
E)  ROI C

Question 3

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

Accepted Answer

A)  days of cash 
B)  days of inventory 
C)  average collection period 
D)  fixed asset turnover 
E)  inventory turnover 
A)  days of cash 
B)  days of inventory 
C)  average collection period 
D)  fixed asset turnover 
E)  inventory turnover B

Question 4

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

Accepted Answer

A) True 
 B)False

Question 5

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

Accepted Answer

A) True 
 B)False

Question 6

"Days of inventory" is an example of a(n)

Accepted Answer

A)  leverage ratio. 
B)  liquidity ratio 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio. 
A)  leverage ratio. 
B)  liquidity ratio 
C)  activity ratio. 
D)  asset management ratio. 
E)  profitability ratio.

Question 7

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

Accepted Answer

A) True 
 B)False

Question 8

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

Accepted Answer

A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision-making. 
E)  It provides a method that is familiar and easy to understand. 
A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision-making. 
E)  It provides a method that is familiar and easy to understand.

Question 9

Unless instructed otherwise, you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

Accepted Answer

A) True 
 B)False

Question 10

The formula that predicts the likelihood of a corporation going bankrupt is called

Accepted Answer

A)  the return on investment. 
B)  the CAPM. 
C)  the index of sustainable growth. 
D)  operating cash flow. 
E)  the Z-value. 
A)  the return on investment. 
B)  the CAPM. 
C)  the index of sustainable growth. 
D)  operating cash flow. 
E)  the Z-value.

Question 11

What are constant dollars and why are they important?

Accepted Answer

Constant dollars are dollars adjusted fo

Question 12

Which financial ratio indicates the number of days of cash on hand, at present sales levels?

Accepted Answer

A)  days of inventory 
B)  fixed asset turnover 
C)  days of cash 
D)  average collection period 
E)  inventory turnover 
A)  days of inventory 
B)  fixed asset turnover 
C)  days of cash 
D)  average collection period 
E)  inventory turnover

Question 13

According to the text, what percentage of portfolio managers uses annual reports when making decisions?

Accepted Answer

A)  20% 
B)  35% 
C)  50% 
D)  60% 
E)  80% 
A)  20% 
B)  35% 
C)  50% 
D)  60% 
E)  80%

Question 14

What are common-size statements?

Accepted Answer

Common-size statements are income statem

Question 15

If the corporation being studied appears to be in poor financial condition, use Altman's Bankruptcy Formula to calculate its Z-value.

Accepted Answer

A) True 
 B)False

Question 16

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
E)  6 
A)  2 
B)  3 
C)  4 
D)  5 
E)  6

Question 17

One way to adjust for inflation for global operations outside the United States is to use the U.S. Consumer Price Index (CPI).

Accepted Answer

A) True 
 B)False

Question 18

In case analysis, you might be asked to critically analyze a situation in which a manager had to make a decision of long-term corporate importance.

Accepted Answer

A) True 
 B)False

Question 19

Which financial ratio indicates the percentage of profit that is paid out as dividends?

Accepted Answer

A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to asset ratio 
A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to asset ratio

Question 20

All of the following are true of annual reports EXCEPT

Accepted Answer

A)  80% of portfolio managers use annual reports when making decisions. 
B)  annual reports contain income statements and balance sheets. 
C)  annual reports contain cash flow statements. 
D)  annual reports contain all the information found in the 10-K form. 
E)  annual reports contain notes to the financial statements indicating why certain actions were taken. 
A)  80% of portfolio managers use annual reports when making decisions. 
B)  annual reports contain income statements and balance sheets. 
C)  annual reports contain cash flow statements. 
D)  annual reports contain all the information found in the 10-K form. 
E)  annual reports contain notes to the financial statements indicating why certain actions were taken.

Which financial ratio measures the utilization of all of the company's assets?

Which of the following financial ratios is not a profitability ratio?

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

"Days of inventory" is an example of a(n)

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

Unless instructed otherwise, you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

The formula that predicts the likelihood of a corporation going bankrupt is called

What are constant dollars and why are they important?

Which financial ratio indicates the number of days of cash on hand, at present sales levels?

According to the text, what percentage of portfolio managers uses annual reports when making decisions?

What are common-size statements?

If the corporation being studied appears to be in poor financial condition, use Altman's Bankruptcy Formula to calculate its Z-value.

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

One way to adjust for inflation for global operations outside the United States is to use the U.S. Consumer Price Index (CPI).

In case analysis, you might be asked to critically analyze a situation in which a manager had to make a decision of long-term corporate importance.

Which financial ratio indicates the percentage of profit that is paid out as dividends?

All of the following are true of annual reports EXCEPT

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters

Exam 13: Suggestions for Case Analysis

Which financial ratio measures the utilization of all of the company's assets?

Which of the following financial ratios is not a profitability ratio?

Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?

Key liquidity ratios include the current ratio, quick ratio, and cash ratio.

A typical financial analysis of a firm would include a study of the operating statements for five or so years.

"Days of inventory" is an example of a(n)

Common-size statements are income statements and balance sheets in which the dollar figures have been converted into percentages.

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

Unless instructed otherwise, you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

The formula that predicts the likelihood of a corporation going bankrupt is called

What are constant dollars and why are they important?

Which financial ratio indicates the number of days of cash on hand, at present sales levels?

According to the text, what percentage of portfolio managers uses annual reports when making decisions?

What are common-size statements?

If the corporation being studied appears to be in poor financial condition, use Altman's Bankruptcy Formula to calculate its Z-value.

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

One way to adjust for inflation for global operations outside the United States is to use the U.S. Consumer Price Index (CPI).

In case analysis, you might be asked to critically analyze a situation in which a manager had to make a decision of long-term corporate importance.

Which financial ratio indicates the percentage of profit that is paid out as dividends?

All of the following are true of annual reports EXCEPT

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters