Question 1

"Inventory to net working capital" 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 2

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

Accepted Answer

A) return on equity 
B) dividend yield on common stock 
C) price/earnings ratio 
D) dividend payout ratio 
E) earnings per share 
A) return on equity 
B) dividend yield on common stock 
C) price/earnings ratio 
D) dividend payout ratio 
E) earnings per share

Question 3

The calculation of ratios from financial data is referred to as

Accepted Answer

A) S)W.O.T. analysis. 
B) ratio analysis. 
C) receivables analysis. 
D) integration analysis. 
E) diversification analysis. 
A) S)W.O.T. analysis. 
B) ratio analysis. 
C) receivables analysis. 
D) integration analysis. 
E) diversification analysis.

Question 4

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

Question 5

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Accepted Answer

A) 95% 
B) 80% 
C) 55% 
D) 40% 
E) 20% 
A) 95% 
B) 80% 
C) 55% 
D) 40% 
E) 20%

Question 6

Net profit margin 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 7

Return on equity

Accepted Answer

A) is the ratio of net profit after taxes to shareholders' equity. 
B) is a profitability ratio. 
C) is referred to by the acronym ROE. 
D) measures the rate of return on the book value of shareholders' total investment in the company. 
E) all of the above 
A) is the ratio of net profit after taxes to shareholders' equity. 
B) is a profitability ratio. 
C) is referred to by the acronym ROE. 
D) measures the rate of return on the book value of shareholders' total investment in the company. 
E) all of the above

Question 8

Ratios are only useful for large firms where their ratios may be compared with industry averages.

Accepted Answer

A) True 
 B)False

Question 9

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Accepted Answer

A) True 
 B)False

Question 10

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

Accepted Answer

A) days of cash 
B) average collection period 
C) accounts receivable turnover 
D) inventory turnover 
E) net working capital turnover 
A) days of cash 
B) average collection period 
C) accounts receivable turnover 
D) inventory turnover 
E) net working capital turnover

Question 11

One of the most important categories of financial ratios are the liquidity ratios.

Accepted Answer

A) True 
 B)False

Question 12

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

Accepted Answer

A) quick ratio 
B) current ratio 
C) cash ratio 
D) strategic ratio 
E) inventory ratio 
A) quick ratio 
B) current ratio 
C) cash ratio 
D) strategic ratio 
E) inventory ratio

Question 13

The public interest rate is the rate of interest banks charge on their lowest risk loans.

Accepted Answer

A) True 
 B)False

Question 14

10-K forms include detailed information not usually available in an annual report.

Accepted Answer

A) True 
 B)False

Question 15

In case analysis, it is best to make an exhibit that includes all the financial ratios.

Accepted Answer

A) True 
 B)False

Question 16

To get a proper picture of the position of the organization, common-size statements and ratios should be compared to

Accepted Answer

A) the organization's future historical performance. 
B) the leading competitor in the industry. 
C) the financial performance of the overall U.S. gross domestic production (GDP). 
D) the direct competitor least like the organization. 
E) industry-wide average trends. 
A) the organization's future historical performance. 
B) the leading competitor in the industry. 
C) the financial performance of the overall U.S. gross domestic production (GDP). 
D) the direct competitor least like the organization. 
E) industry-wide average trends.

Question 17

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Which financial indicator measures the ratio of sales to fixed assets?

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

Question 20

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

"Inventory to net working capital" is an example of a(n)

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

The calculation of ratios from financial data is referred to as

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

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Net profit margin is what type of financial ratio?

Return on equity

Ratios are only useful for large firms where their ratios may be compared with industry averages.

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

One of the most important categories of financial ratios are the liquidity ratios.

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

The public interest rate is the rate of interest banks charge on their lowest risk loans.

10-K forms include detailed information not usually available in an annual report.

In case analysis, it is best to make an exhibit that includes all the financial ratios.

To get a proper picture of the position of the organization, common-size statements and ratios should be compared to

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

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

Which financial indicator measures the ratio of sales to fixed assets?

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

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

"Inventory to net working capital" is an example of a(n)

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

The calculation of ratios from financial data is referred to as

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

Between 1997 and 1999, what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Net profit margin is what type of financial ratio?

Return on equity

Ratios are only useful for large firms where their ratios may be compared with industry averages.

When conducting a financial analysis, select and discuss those financial ratios that have an impact on the company's problems.

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

One of the most important categories of financial ratios are the liquidity ratios.

Which financial ratio measures the company's ability to pay off its short-term obligations from current assets, excluding inventories?

The public interest rate is the rate of interest banks charge on their lowest risk loans.

10-K forms include detailed information not usually available in an annual report.

In case analysis, it is best to make an exhibit that includes all the financial ratios.

To get a proper picture of the position of the organization, common-size statements and ratios should be compared to

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

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

Which financial indicator measures the ratio of sales to fixed assets?

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

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