Question 1

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine?

Accepted Answer

A) profit margin, current ratio, fixed charge coverage ratio 
B) quick ratio, debt ratio, time interest earned 
C) inventory turnover ratio, days sales outstanding, fixed asset turnover ratio 
D) total assets turnover ratio, price earnings ratio, return on total assets 
E) time interest earned, profit margin, fixed asset turnover ratio 
A) profit margin, current ratio, fixed charge coverage ratio 
B) quick ratio, debt ratio, time interest earned 
C) inventory turnover ratio, days sales outstanding, fixed asset turnover ratio 
D) total assets turnover ratio, price earnings ratio, return on total assets 
E) time interest earned, profit margin, fixed asset turnover ratio

Question 2

The income statement measures the flow of funds into (i.e.revenue) and out of (i.e.expenses) the firm over a certain time period.It is always based on accounting data.

Accepted Answer

A) True 
 B)False

Question 3

Retained earnings is the cash that has been generated by the firm through its operations which has not been paid out to stockholders as dividends.Retained earnings are kept in cash or near cash accounts and thus, these cash accounts, when added together, will always be equal to the total retained earnings of the firm.

Accepted Answer

A) True 
 B)False

Question 4

The balance sheet presents a summary of the firm's revenues and expenses over an accounting period.

Accepted Answer

A) True 
 B)False

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine?

The income statement measures the flow of funds into (i.e.revenue) and out of (i.e.expenses) the firm over a certain time period.It is always based on accounting data.

The balance sheet presents a summary of the firm's revenues and expenses over an accounting period.

An Overview of Managerial Finance

The Financial Environment: Markets, Institutions, and Investment Banking

Time Value of Money

The Cost of Money Interest Rates

Bonds Debt Characteristics and Valuation

Socks Equity Characteristics and Valuation

Risk and Rates of Return

Capital Budgeting Techniques

Project Cash Flows and Risk Appendix

The Cost of Capital

Capital Structure

Distribution of Retained Earrings: Dividends and Stock Repurchases

Working Capital Policy

Managing Short- Term Assets

Managing Short-Term Liabilities Financing

Financial Planning and Control

Filters

Exam 2: Analysis of Financial Statements

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine?

The income statement measures the flow of funds into (i.e.revenue) and out of (i.e.expenses) the firm over a certain time period.It is always based on accounting data.

The balance sheet presents a summary of the firm's revenues and expenses over an accounting period.

An Overview of Managerial Finance

The Financial Environment: Markets, Institutions, and Investment Banking

Time Value of Money

The Cost of Money Interest Rates

Bonds Debt Characteristics and Valuation

Socks Equity Characteristics and Valuation

Risk and Rates of Return

Capital Budgeting Techniques

Project Cash Flows and Risk Appendix

The Cost of Capital

Capital Structure

Distribution of Retained Earrings: Dividends and Stock Repurchases

Working Capital Policy

Managing Short- Term Assets

Managing Short-Term Liabilities Financing

Financial Planning and Control

Filters