Question 1

The 2002 Sarbanes-Oxley Act was designed to

Accepted Answer

A)  limit the compensation that could be paid to corporate CEOs. 
B)  eliminate the many disclosure and conflict of interest problems of corporations. 
C)  provide uniform international accounting standards. 
D)  two of the above. 
A)  limit the compensation that could be paid to corporate CEOs. 
B)  eliminate the many disclosure and conflict of interest problems of corporations. 
C)  provide uniform international accounting standards. 
D)  two of the above.

Question 2

Table 3.2
Dana Dairy Products Key Ratios   Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010   Balance Sheet
Dana Dairy Products
December 31, 2010  
-The return on equity for Dana Dairy Products for 2010 was ________. (See Table 3.2)

Accepted Answer

A)  0.6 percent 
B)  5.6 percent 
C)  0.9 percent 
D)  50 percent 
A)  0.6 percent 
B)  5.6 percent 
C)  0.9 percent 
D)  50 percent

Question 3

The ________ is a measure of liquidity which excludes ________, generally the least liquid asset.

Accepted Answer

A)  current ratio; accounts receivable 
B)  quick ratio; accounts receivable 
C)  current ratio; inventory 
D)  quick ratio; inventory 
A)  current ratio; accounts receivable 
B)  quick ratio; accounts receivable 
C)  current ratio; inventory 
D)  quick ratio; inventory

Question 4

GAAP is the accounting profession's rule-setting body.

Accepted Answer

A) True 
 B)False

Question 5

Table 3.2
Dana Dairy Products Key Ratios   Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010   Balance Sheet
Dana Dairy Products
December 31, 2010  
-Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)

Accepted Answer

A)  has deteriorated 
B)  remained the same 
C)  has improved 
D)  cannot be determined 
A)  has deteriorated 
B)  remained the same 
C)  has improved 
D)  cannot be determined

Question 6

Accounting practices and procedures used to prepare financial statements are called

Accepted Answer

A)  SEC. 
B)  FASB. 
C)  GAAP. 
D)  IRB. 
A)  SEC. 
B)  FASB. 
C)  GAAP. 
D)  IRB.

Question 7

In the DuPont system, the return on equity is equal to

Accepted Answer

A)  (net profit margin) × (total asset turnover). 
B)  (stockholders' equity) × (financial leverage multiplier). 
C)  (return on total assets) × (financial leverage multiplier). 
D)  (return on total assets) × (total asset turnover). 
A)  (net profit margin) × (total asset turnover). 
B)  (stockholders' equity) × (financial leverage multiplier). 
C)  (return on total assets) × (financial leverage multiplier). 
D)  (return on total assets) × (total asset turnover).

Question 8

The ________ measures the activity, or liquidity, of a firm's inventory.

Accepted Answer

A)  average collection period 
B)  inventory turnover 
C)  quick ratio 
D)  current ratio 
A)  average collection period 
B)  inventory turnover 
C)  quick ratio 
D)  current ratio

Question 9

The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities.

Accepted Answer

A) True 
 B)False

The 2002 Sarbanes-Oxley Act was designed to

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -The return on equity for Dana Dairy Products for 2010 was ________. (See Table 3.2)

The is a measure of liquidity which excludes , generally the least liquid asset.

GAAP is the accounting profession's rule-setting body.

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)

Accounting practices and procedures used to prepare financial statements are called

In the DuPont system, the return on equity is equal to

The ________ measures the activity, or liquidity, of a firm's inventory.

The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities.

The Role of Managerial Finance

The Financial Market Environment

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters

Exam 3: Financial Statements and Ratio Analysis

The 2002 Sarbanes-Oxley Act was designed to

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -The return on equity for Dana Dairy Products for 2010 was ________. (See Table 3.2)

The ________ is a measure of liquidity which excludes ________, generally the least liquid asset.

GAAP is the accounting profession's rule-setting body.

Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)

Accounting practices and procedures used to prepare financial statements are called

In the DuPont system, the return on equity is equal to

The ________ measures the activity, or liquidity, of a firm's inventory.

The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities.

The Role of Managerial Finance

The Financial Market Environment

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters

The is a measure of liquidity which excludes , generally the least liquid asset.