Financial Analysis Test
A company wants to increase its current ratio. Which of the following would help the most?
Accounting scandals of the past 5 years ______.
An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the final inventory valuation is ________.
Asset Turnover is defined as ______.
By doing/issuing which of the following could a company raise short-term funds by selling receivables?
CAPM formula calculates which of the following?
Financial managers use the _____________ to plan for monthly financing needs.
Firm A has a Return on Equity (ROE) equal to 24%, while firm B has a ROE of 15% during the same year. Both firms have a total debt ratio (D/V) equal to 0.8. Firm A has an asset turnover ratio of 0....
Gerald's had opening total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Their net income was $180,000. No addit...
Government mandated requirements, such as installing pollution control equipment ______.
How does Cash Flow Return on Investment differ from most financial ratios?
How does Gross Income differ from Net Income?
How often can a company change its inventory valuation methodology and still be compliant with GAAP?
If a company has a high P/E ratio relative to it's competitors ____.
If a company using financing has a 60% chance of a $75,000 return under normal conditions but a 40% chance of a $20,000 return when money is tight and borrowing costs are higher, what is the expect...
If a firm has $100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital?
If two companies have equal risk, which one will have the higher stock price?
In 2002, the US passed the Sarbanes-Oxley law which ____.
In breakeven analysis, if fixed costs rise, then the breakeven point will __________.
Insider trading _____.
Operating Efficiency is defined as ______.
Planning for future growth is called ________.
Pro forma statements are _______ statements.
Rate of profit (r) is defined as ______.
Retained earnings will change over time because of several factors. Which of the following factors would lead to an increase in the Retained Earnings?
Return on Assets is defined as _______.
The accounting scandals of recent years ______.
The three sections of a Statement of Cash Flows are _____.
To measure a firm's solvency as completely as possible, we need to consider ______.
What does CAPM stand for?
What does Return on Assets indicate?
What does the Price to Earnings (P/E) ratio demonstrate?
What is financial analysis?
What is historical value?
What is meant by "the goal of the corporation is to maximize shareholder wealth"?
What is one caveat when calculating ROA and comparing to other companies?
What is operating leverage defined as?
What is the DuPont analysis?
What is the formula for Return on Investor Capital?
What is the purpose of measuring liquidity?
What is the purpose of measuring profitability?
What is the purpose of measuring solvency?
What is the purpose of measuring stability?
What type of analysis will describe how changes in volume affect costs and profits?
When a company files a statement of their financial plans for the next two years with the SEC, it is called a ______.
Which cash collection technique is the most cost-effective for companies with many locations?
Which financial statement best allows a firm to assess its ability to pay dividends?
Which is a characteristic of an efficient market?
Which is an example of a variable cost?
Which is the primary financial statement used to measure profitability?
Which is/are the primary financial statements used to measure liquidity?
Which is/are the primary financial statements used to measure solvency?
Which is/are the primary financial statements used to measure stability?
Which of the following are traded in the capital markets?
Which of the following does the cash flow cycle measure?
Which of the following equations properly represents a derivation of the fundamental accounting equation?
Which of the following inventory methods will always produce the same results under both a periodic and a perpetual system?
Which of the following is a flaw with financial analysis?
Which of the following is an example of an area of business where use of "questionable" ethics is considered a necessity?
Which of the following is considered a profitability measure?
Which of the following is not a financial intermediary?
Which of the following is not a fundamental of accounting?
Which of the following is not a part of cost of goods sold?
Which of the following is not an area which is assessed by financial analysis?
Which of the following transactions would have no impact on the stockholder's equity?
Which of the following types of firms may operate with high operating leverage?
Which of the following would not be included in a balance sheet?
Which of these items would be accounted for as an expense?
Which ratio would you use to assess a company's ability to pay bills?
Which ratio would you use to measure how effectively the firm uses the money shareholders have invested?
Which report does a publicly traded company file quarterly with the SEC?
Which security makes up the majority of external financing for corporations?
Which short-term financing rate always requires the use of international data?
Why do you not subtract interest expense from operating profit when calculating Return on Investment Capital?
Why would a company calculate their Risk Adjusted Return on Capital?
With which of the following regulatory bodies would a publicly traded company be much more involved than a private company would be?