Question 1

Which financial ratio measures the utilization of plant and equipment?

Accepted Answer

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

Question 2

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

Accepted Answer

A) debt to asset ratio 
B) price/earnings ratio 
C) coverage of fixed charges 
D) debt to equity ratio 
E) times interest earned 
A) debt to asset ratio 
B) price/earnings ratio 
C) coverage of fixed charges 
D) debt to equity ratio 
E) times interest earned B

Question 3

According to Schilit, forensic accounting is a search for hidden weaknesses in a company's performance.

Accepted Answer

A) True 
 B)False  True

Question 4

Which financial ratio is a measure of the ability of the company to meet all of its fixed-charge obligations?

Accepted Answer

A) debt to asset ratio 
B) debt to equity ratio 
C) times interest earned 
D) long-term debt to capital structure 
E) coverage of fixed charges 
A) debt to asset ratio 
B) debt to equity ratio 
C) times interest earned 
D) long-term debt to capital structure 
E) coverage of fixed charges

Question 5

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

Accepted Answer

A) working capital/total assets. 
B) retained earnings/total assets. 
C) current assets/current liabilities. 
D) market value of equity/total liabilities. 
E) sales/total assets. 
A) working capital/total assets. 
B) retained earnings/total assets. 
C) current assets/current liabilities. 
D) market value of equity/total liabilities. 
E) sales/total assets.

Question 6

At what Z-value level is a firm considered in serious trouble?

Accepted Answer

A) below 1.81 
B) above 1.81 
C) greater than 5.0 
D) between 2.2 and 3.1 
E) between 3.2 and 4.1 
A) below 1.81 
B) above 1.81 
C) greater than 5.0 
D) between 2.2 and 3.1 
E) between 3.2 and 4.1

Question 7

When preparing a case analysis, you should always undertake outside research and go beyond the decision date of the case.

Accepted Answer

A) True 
 B)False

Question 8

A Z-value below 10 indicates significant credit problems.

Accepted Answer

A) True 
 B)False

Question 9

What is the Z-value?

Accepted Answer

If the corporation being studied appears

Question 10

"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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

According to the text, what information can be obtained by accessing the SEC website?

Accepted Answer

A) corporate annual reports and 10-k forms 
B) press releases 
C) product specifications 
D) research and development trends 
E) information about graduate school 
A) corporate annual reports and 10-k forms 
B) press releases 
C) product specifications 
D) research and development trends 
E) information about graduate school

Question 14

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

Accepted Answer

A) return on investment 
B) return on equity 
C) gross profit margin 
D) net profit margin 
E) inventory to net working capital 
A) return on investment 
B) return on equity 
C) gross profit margin 
D) net profit margin 
E) inventory to net working capital

Question 15

What is the main purpose of conducting outside research into the environmental setting of the case?

Accepted Answer

A) It allows students to identify how the company addressed the problem. 
B) It provides a learning experience on library usage which is helpful in all courses. 
C) It gives a realistic background of the industry during a specified period. 
D) It gives you clues as to what the organization should be doing in the future. 
E) It furnishes large amounts of data - both pertinent and extraneous. 
A) It allows students to identify how the company addressed the problem. 
B) It provides a learning experience on library usage which is helpful in all courses. 
C) It gives a realistic background of the industry during a specified period. 
D) It gives you clues as to what the organization should be doing in the future. 
E) It furnishes large amounts of data - both pertinent and extraneous.

Question 16

Fixed asset turnover is what type of financial ratio?

Accepted Answer

A) liquidity ratio 
B) profitability ratio 
C) activity ratio 
D) leverage ratio 
E) revenue ratio 
A) liquidity ratio 
B) profitability ratio 
C) activity ratio 
D) leverage ratio 
E) revenue ratio

Question 17

Converting categories on financial statements from dollar terms to percentages results in

Accepted Answer

A) inflation-adjusted statements. 
B) diverse rates of returns. 
C) common-size statements. 
D) constant dollar denominations. 
E) equivalency comparison. 
A) inflation-adjusted statements. 
B) diverse rates of returns. 
C) common-size statements. 
D) constant dollar denominations. 
E) equivalency comparison.

Question 18

Among the most useful and important documents that can be used to understand why actions were taken are

Accepted Answer

A) news releases. 
B) product specification reports. 
C) its corporate history. 
D) annual reports. 
E) 10-Q forms. 
A) news releases. 
B) product specification reports. 
C) its corporate history. 
D) annual reports. 
E) 10-Q forms.

Question 19

What are constant dollars and why are they important?

Accepted Answer

Constant dollars are dollars adjusted fo

Question 20

According to the text, what percentage of security analysts use annual reports when making decisions?

Accepted Answer

A) 20% 
B) 35% 
C) 50% 
D) 75% 
E) 100% 
A) 20% 
B) 35% 
C) 50% 
D) 75% 
E) 100%

Which financial ratio measures the utilization of plant and equipment?

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

According to Schilit, forensic accounting is a search for hidden weaknesses in a company's performance.

Which financial ratio is a measure of the ability of the company to meet all of its fixed-charge obligations?

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

At what Z-value level is a firm considered in serious trouble?

When preparing a case analysis, you should always undertake outside research and go beyond the decision date of the case.

A Z-value below 10 indicates significant credit problems.

What is the Z-value?

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

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

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

According to the text, what information can be obtained by accessing the SEC website?

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

What is the main purpose of conducting outside research into the environmental setting of the case?

Fixed asset turnover is what type of financial ratio?

Converting categories on financial statements from dollar terms to percentages results in

Among the most useful and important documents that can be used to understand why actions were taken are

What are constant dollars and why are they important?

According to the text, what percentage of security analysts use annual reports when making decisions?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters

Exam 12: Suggestions for Case Analysis

Which financial ratio measures the utilization of plant and equipment?

Which financial indicator shows the current market's evaluation of a stock, based on its earnings?

According to Schilit, forensic accounting is a search for hidden weaknesses in a company's performance.

Which financial ratio is a measure of the ability of the company to meet all of its fixed-charge obligations?

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

At what Z-value level is a firm considered in serious trouble?

When preparing a case analysis, you should always undertake outside research and go beyond the decision date of the case.

A Z-value below 10 indicates significant credit problems.

What is the Z-value?

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

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

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

According to the text, what information can be obtained by accessing the SEC website?

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

What is the main purpose of conducting outside research into the environmental setting of the case?

Fixed asset turnover is what type of financial ratio?

Converting categories on financial statements from dollar terms to percentages results in

Among the most useful and important documents that can be used to understand why actions were taken are

What are constant dollars and why are they important?

According to the text, what percentage of security analysts use annual reports when making decisions?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters