Question

*************Just choose the correct answer

5- COMMON-SIZE STATEMENTS Includes:(……………….). *

A) Common-Size Balance Sheets.

B) Common-Size Income Statements.

C) Common-Size Statements of Cash Flows.

D) All of the above.

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6- COMMON-SIZE STATEMENTS IS (………………). *

A) A standardized financial statement presenting all items in percentage terms.

B) NOT A standardized financial statement presenting all items in percentage terms.

C) A standardized financial statement presenting one items in percentage terms.

D) All of the above.

______________

7- Common–Base Year Statement is (………..).

A) A standardized financial statement presenting all items relative to a certain base year amount

B) A standardized income statement presenting all items relative to a certain base year amount

C) A standardized financial statement presenting one items relative to a certain base year amount

D) All of the above

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9- The Meaning of (…………..): is the Company's Financial flexibility, stability and its ability to meet its financial obligations as they full due.

A) Company's.

B) Cash coverage.

C) Current assets.

D- All of the above.

____________

11- The Formula Inventory Turnover is: (…………..).

A) Inventory Turnover = Sales / Average Inventory.

B) Inventory Turnover = Assets / Average Inventory.

C) Inventory Turnover = Sum / Average Inventory.

D) Non of the above.

____________

15- (…………..) is a measurement tell us what percentage of a company’s sales revenue would remain after all costs have been taken into account.

A. Gross profit margin.

B. Net profit margin.

C. Return on assets.

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27. The amount that investors are willing to pay for each dollar of annual earnings is reflected in the:(…………..).

A. profit margin.

B. return on assets.

C. return on equity.

D. asset turnover.

E. earnings before interest and taxes.

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33- A firm has a total debt ratio of .47. This means the firm has 47 cents in debt for every:(................).

A. $1 in total equity.

B. $.53 in total assets.

C. $1 in current assets.

D. $.53 in total equity.

E. $1 in fixed assets.

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34- The long-term debt ratio is probably of most interest to a firm's:(................).

A. credit customers.

B. employees.

C. suppliers.

D. mortgage holder.

E. stockholders.

________________

35- From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts?.

A. times interest earned ratio

B. cash coverage ratio

C. cash ratio

D. quick ratio

E. interval measure.

________________

50- The Expressions to breaks Return on Equity are : (…………..).

A) Profitability.

B) Financial Leverage.

C) All of the above.

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54- A firm has sales of $22,400, net income of $3,600, net fixed assets of $18,700, inventory of$2,800, and total current assets of $6,300. What is the common-size statement value of inventory?.

A. 10.07%

B. 13.67%

C. 11.20%

D. 12.50%.

E. 9.84%

Answer 1

Q5. Common Size financial statements used to analyse each item in the balance sheet, Income statement and cashflow statement as a percentage of base amount for that Period.

Answer D. All of the above