Question 1

"Times interest earned" 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

All of the following ratios reflect leverage ratios EXCEPT

Accepted Answer

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

Question 3

To adjust for general inflation, what index does the text suggest?

Accepted Answer

A) Dow-Jones Industrial Average 
B) New York Stock Exchange Index 
C) Wilshire 500 Equity Index 
D) Consumer Price Index 
E) NASDAQ Series 
A) Dow-Jones Industrial Average 
B) New York Stock Exchange Index 
C) Wilshire 500 Equity Index 
D) Consumer Price Index 
E) NASDAQ Series

Question 4

A typical financial analysis would compare the firm under study with industry standards.

Accepted Answer

A) True 
 B)False

Question 5

Which financial ratio measures the rate of return on the book value of shareholders' total investment in the company?

Accepted Answer

A) return on investment 
B) return on equity 
C) gross profit margin 
D) net profit margin 
E) earnings per share 
A) return on investment 
B) return on equity 
C) gross profit margin 
D) net profit margin 
E) earnings per share

Question 6

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

Accepted Answer

A) True 
 B)False

Question 7

Ratio analysis is a valuable part of SWOT analysis, helping to assess the company's overall situation and pinpoint some problem areas.

Accepted Answer

A) True 
 B)False

Question 8

Dollars adjusted for inflation to make them comparable over various years are known as

Accepted Answer

A) consumer dollars. 
B) constant dollars. 
C) consumer inflation. 
D) constant inflation. 
E) earning dollars. 
A) consumer dollars. 
B) constant dollars. 
C) consumer inflation. 
D) constant inflation. 
E) earning dollars.

Question 9

Which financial ratio indicates the ability of the company to meet its annual interest costs?

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 10

What has been the most popular method of teaching strategy and policy for years?

Accepted Answer

A) case analysis 
B) lecture 
C) team teaching 
D) group presentations 
E) student teaching 
A) case analysis 
B) lecture 
C) team teaching 
D) group presentations 
E) student teaching

Question 11

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

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 12

Which two basic statements provide most of the financial data needed for analysis?

Accepted Answer

A) statement of retained earnings and income statement 
B) sources and uses of working capital and the balance sheet 
C) non-operating gains and losses and statement of financial position 
D) historical income statement and balance sheet 
E) statement of financial position and statement of owner's equity 
A) statement of retained earnings and income statement 
B) sources and uses of working capital and the balance sheet 
C) non-operating gains and losses and statement of financial position 
D) historical income statement and balance sheet 
E) statement of financial position and statement of owner's equity

Question 13

"Earnings per share" 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 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

Accepted Answer

A) True 
 B)False

Question 17

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

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 18

Inventory turnover and asset turnover are both examples of which 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 19

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

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

"Times interest earned" is an example of a(n)

All of the following ratios reflect leverage ratios EXCEPT

To adjust for general inflation, what index does the text suggest?

A typical financial analysis would compare the firm under study with industry standards.

Which financial ratio measures the rate of return on the book value of shareholders' total investment in the company?

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

Ratio analysis is a valuable part of SWOT analysis, helping to assess the company's overall situation and pinpoint some problem areas.

Dollars adjusted for inflation to make them comparable over various years are known as

Which financial ratio indicates the ability of the company to meet its annual interest costs?

What has been the most popular method of teaching strategy and policy for years?

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

Which two basic statements provide most of the financial data needed for analysis?

"Earnings per share" is an example of a(n)

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

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

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Inventory turnover and asset turnover are both examples of which type of financial ratio?

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

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

"Times interest earned" is an example of a(n)

All of the following ratios reflect leverage ratios EXCEPT

To adjust for general inflation, what index does the text suggest?

A typical financial analysis would compare the firm under study with industry standards.

Which financial ratio measures the rate of return on the book value of shareholders' total investment in the company?

In case analysis, how the company actually dealt with the case problem is the most important part of the solution.

Ratio analysis is a valuable part of SWOT analysis, helping to assess the company's overall situation and pinpoint some problem areas.

Dollars adjusted for inflation to make them comparable over various years are known as

Which financial ratio indicates the ability of the company to meet its annual interest costs?

What has been the most popular method of teaching strategy and policy for years?

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

Which two basic statements provide most of the financial data needed for analysis?

"Earnings per share" is an example of a(n)

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

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

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Inventory turnover and asset turnover are both examples of which type of financial ratio?

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

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