Question 1

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 2

All of the following are true of annual reports EXCEPT

Accepted Answer

A)  80% of portfolio managers use annual reports when making decisions. 
B)  annual reports contain income statements and balance sheets. 
C)  annual reports contain cash flow statements. 
D)  annual reports contain all the information found in the 10-K form. 
E)  annual reports contain notes to the financial statements indicating why certain actions were taken. 
A)  80% of portfolio managers use annual reports when making decisions. 
B)  annual reports contain income statements and balance sheets. 
C)  annual reports contain cash flow statements. 
D)  annual reports contain all the information found in the 10-K form. 
E)  annual reports contain notes to the financial statements indicating why certain actions were taken.

Question 3

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 4

A Z-value below 10 indicates significant credit problems.

Accepted Answer

A) True 
 B)False

Question 5

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

Accepted Answer

A) True 
 B)False

Question 6

What ratios are recommended for financial ratio analysis?

Accepted Answer

Some of the most important financial rat

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 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

What are constant dollars and why are they important?

Accepted Answer

Constant dollars are dollars adjusted fo

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

Accepted Answer

A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision making. 
E)  It provides a method which is familiar and easy to understand. 
A)  It is helpful in predicting the future potential of the organization. 
B)  It contributes to determining the risk factors when computing the Z-value. 
C)  It shows the true performance of the corporation adjusted for inflation to make them comparable over years. 
D)  It is easier for the financial analyst to judge the effectiveness of management's decision making. 
E)  It provides a method which is familiar and easy to understand.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

"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 17

Which financial ratio shows the return on all of the assets under its control regardless of source of financing?

Accepted Answer

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

Question 18

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%

Question 19

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 20

The gross domestic product (GDP)is used ONLY in the United States to measure the total output of goods and services within the country's borders.

Accepted Answer

A) True 
 B)False

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

All of the following are true of annual reports EXCEPT

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

A Z-value below 10 indicates significant credit problems.

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

What ratios are recommended for financial ratio analysis?

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

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

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

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

What are constant dollars and why are they important?

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

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

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

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

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

Which financial ratio shows the return on all of the assets under its control regardless of source of financing?

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

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

The gross domestic product (GDP)is used ONLY in the United States to measure the total output of goods and services within the country's borders.

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

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

All of the following are true of annual reports EXCEPT

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

A Z-value below 10 indicates significant credit problems.

The amount of change from one year to the next in GDP indicates how much that country's economy is growing.

What ratios are recommended for financial ratio analysis?

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

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

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

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

What are constant dollars and why are they important?

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

What benefit does converting sales and profits to constant dollars in times of inflation offer when analyzing a case?

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

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

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

Which financial ratio shows the return on all of the assets under its control regardless of source of financing?

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

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

The gross domestic product (GDP)is used ONLY in the United States to measure the total output of goods and services within the country's borders.

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