Question 1

________ is used worldwide and measures the total output of goods and services within a country's borders.

Accepted Answer

A)  CPI 
B)  Prime interest rate 
C)  GDP 
D)  Z-Value 
E)  The Index of sustainable growth 
A)  CPI 
B)  Prime interest rate 
C)  GDP 
D)  Z-Value 
E)  The Index of sustainable growth

Question 2

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 3

If a firm's trends in common-size statements are generally in line with those of the rest of the industry,problems are less likely than if the firm's trends are worse than the industry average.

Accepted Answer

A) True 
 B)False

Question 4

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

Accepted Answer

A)  debt to asset ratio 
B)  debt to equity ratio 
C)  long-term debt to capital structure 
D)  times interest earned 
E)  current liabilities to equity 
A)  debt to asset ratio 
B)  debt to equity ratio 
C)  long-term debt to capital structure 
D)  times interest earned 
E)  current liabilities to equity

Question 5

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 6

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The quick ratio is also known as the

Accepted Answer

A)  key profitability ratio. 
B)  EPS. 
C)  acid test. 
D)  asset turnover. 
E)  key activity ratio. 
A)  key profitability ratio. 
B)  EPS. 
C)  acid test. 
D)  asset turnover. 
E)  key activity ratio.

Question 9

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

Question 10

What ratios are recommended for financial ratio analysis?

Accepted Answer

Some of the most important financial rat

Question 11

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

Accepted Answer

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

Question 12

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 13

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

Question 14

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

Accepted Answer

A) True 
 B)False

Question 18

All of the following ratios represent activity ratios EXCEPT

Accepted Answer

A)  accounts payable period. 
B)  days of inventory. 
C)  net working capital turnover. 
D)  earnings per share. 
E)  days of cash. 
A)  accounts payable period. 
B)  days of inventory. 
C)  net working capital turnover. 
D)  earnings per share. 
E)  days of cash.

Question 19

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 20

One of the most important categories of financial ratios is the group of liquidity ratios.

Accepted Answer

A) True 
 B)False

________ is used worldwide and measures the total output of goods and services within a country's borders.

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

If a firm's trends in common-size statements are generally in line with those of the rest of the industry,problems are less likely than if the firm's trends are worse than the industry average.

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

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

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

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

The quick ratio is also known as the

Which financial ratio measures the utilization of plant and equipment?

What ratios are recommended for financial ratio analysis?

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

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

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

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

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

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

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

All of the following ratios represent activity ratios EXCEPT

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

One of the most important categories of financial ratios is the group of liquidity ratios.

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

________ is used worldwide and measures the total output of goods and services within a country's borders.

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

If a firm's trends in common-size statements are generally in line with those of the rest of the industry,problems are less likely than if the firm's trends are worse than the industry average.

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

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

The debt-to-asset ratio measures the funds provided by creditors versus the funds provided by owners.

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

The quick ratio is also known as the

Which financial ratio measures the utilization of plant and equipment?

What ratios are recommended for financial ratio analysis?

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

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

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

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

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

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

It is recommended that a financial analysis include a comparison of trends in one category with trends in related categories.

All of the following ratios represent activity ratios EXCEPT

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

One of the most important categories of financial ratios is the group of liquidity ratios.

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