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    Financial Management Source #6

    Uploaded by

    EDPSENPAI
    Return on sales, return on assets and return on equity are examples of profitability ratios. The document provides 20 multiple choice questions related to financial ratios, statements, and calculations. It tests understanding of concepts like current ratio, quick ratio, return on equity, debt-to-equity ratio, and calculations involving financial statement values.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial Management Source #6

    Uploaded by

    EDPSENPAI
    440 views12 pages
    Return on sales, return on assets and return on equity are examples of profitability ratios. The document provides 20 multiple choice questions related to financial ratios, statements, and calculations. It tests understanding of concepts like current ratio, quick ratio, return on equity, debt-to-equity ratio, and calculations involving financial statement values.

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    Return on sales, return on assets and return on equity are examples of profitability ratios. The document provides 20 multiple choice questions related to financial ratios, statements, and calculations. It tests understanding of concepts like current ratio, quick ratio, return on equity, debt-to-equity ratio, and calculations involving financial statement values.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    440 views12 pages

    Financial Management Source #6

    Uploaded by

    EDPSENPAI
    Return on sales, return on assets and return on equity are examples of profitability ratios. The document provides 20 multiple choice questions related to financial ratios, statements, and calculations. It tests understanding of concepts like current ratio, quick ratio, return on equity, debt-to-equity ratio, and calculations involving financial statement values.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 12

    Long Test 1

    Return on sales, return on assets and return on equity are examples of

    Select one:
    liquidity ratios
    leverage ratios
    activity ratios
    profitability ratios

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    Question 2

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    Question text

    Fana’s American Bakery has a return on assets (ROA) of 10 percent and a return on equity
    (ROE) of 14 percent. If total assets is 100,000, what is the value of its total equity?

    Select one:
    7,143
    14,000
    1,400,000
    71,429

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    Marks for this submission: 1.00/1.00.
    Question 3

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    Question text

    FPL Co. Statement of Financial Position has Total Assets worth 100,000 wherein 60,000 is non-
    current. It also has Total Liabilities worth 200,000 wherein 80,000 is non-current. It was found
    out that there was an unrecorded depreciation worth 20,000 and unrecorded purchase of
    merchandise on account worth 15,000. What is the current ratio?

    Select one:
    0.26
    0.56
    0.41
    0.50

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    Question 4

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    Question text

    This analysis is usually used to understand operational performance of the entity to help in
    making their business decisions.
    Select one:
    Internal Analysis
    Overall Analysis
    External Audit
    External Analysis

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    Question 5

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    Question text

    Current assets divided by current liabilities is the definition of the:

    Select one:
    Earnings per share
    Debt ratio
    Current ratio
    Quick ratio

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    Question 6

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    Question text

    The quick ratio is defined as:

    Select one:
    current assets less inventory, less prepaid expenses. The resulting amount will then be
    divided by current liabilities
    current assets divided by current liabilities
    current assets divided by total debt
    assets less inventory, divided by total liabilities

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    Question 7

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    Question text

    Ratios that measure the ability of the company to pay its short-term debts are called:

    Select one:
    leverage ratios
    liquidity ratios
    activity ratios
    profitability ratios
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    Question 8

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    Question text

    FPL Company has cash and cash equivalents worth 10,000; equipment worth 20,000; accounts
    receivable worth 15,000; notes receivable worth 12,000 ; accounts payable worth 10,000 and
    notes payable worth 5,000 maturing after one month. What is the current ratio?

    Select one:
    2.47
    3.7
    1.67
    2.5

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    Question 9

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    Question text
    The current assets and current liabilities of FPL company is 25 and 25 respectively. Reviewing
    the past transactions the company purchased merchandise worth 5 and it was immediately paid.
    However, it was discovered that this transaction was mistakenly recorded as a purchase on
    account. After adjusting the errors, what is the the current ratio?

    Select one:
    a. 0.4
    b. 1
    c. 0.5
    d. 0.75

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    Question 10

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    Question text

    Its objective is to provide information about the financial position and the financial performance
    and cash flows of an entity that is useful to a wide range of users in making economic decisions
    Select one:
    a. Fund Flow Statement
    b. Financial Statements
    c. Statement Corporate Taxes
    d. Statement of Operational Performance

    Minden Co has current assets that consist of cash: 20,000, receivables: 70,000 and inventory:
    90,000. Current liabilities are 75,000. The quick ratio is

    Select one:
    3.2
    2.2
    1.2
    2

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    Question 12

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    Question text

    Total asset turnover, receivables turnover and inventory turnover ratios measure

    Select one:
    liquidity
    efficiency
    profitability
    efficacy

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    Question 13

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    Question text

    Shepherd Enterprises has a debt-to-equity ratio of 40 percent. The company’s total assets is
    equal to Php 800 million. What is the value of the company's total liabilities?

    Select one:
    Php 458,428,472
    Php 320,000,000
    Php 228,571,429
    Php 2,400,000,000

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    Question 14

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    Question text

    Return on equity is directly affected by

    Select one:
    number of shares and liabilities and non-accountable transactions
    net income, number of shares and dividends
    total assets and non-financial transactions
    net income and equity
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    Question 15

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    Question text

    Minden Co has current assets that consist of cash: Php20,000, receivables: Php70,000 and
    inventory: Php90,000. Current liabilities are Php75,000. The current ratio is:

    Select one:
    3.2
    2.4
    2
    2.2

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    Question 16

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    Question text
    The receivables turnover ratio is defined as

    Select one:
    none of these
    receivables plus bad debt allowances
    receivables divided by sales
    sales divided by receivables

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    Question 17

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    Question text

    Fama’s French Bakery has a return on assets (ROA) of 10 percent and a return on equity (ROE)
    of 14 percent. If equity is equal to 100,000. What is the value of total assets?

    Select one:
    140,000
    14,000
    1,400,000
    1,400

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    Question 18

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    Question text

    In this type of analysis you may compare figures from several years, so you are comparing the
    amounts in each account from the past up to the present.

    Select one:
    external audit
    vertical analysis
    horizontal analysis
    internal analysis

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    Question 19

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    Question text

    The Merriam Company has determined that its return on equity is 15 percent. Management is
    interested in the various components that went into this calculation. You are given the following
    information: (total debt)/(total assets) = 0.35 and total assets = 1,000,000. What is the net
    income?

    Select one:
    a. 428,571
    b. 97,500
    c. 52,500
    d. 23,333

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    Question 20

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    Question text

    Lone Star Plastics has the following data:


    Gross Sales 100,000
    Gross profit margin 6.0% Tax rate 40%
    What is Lone Star’s net income after taxes?

    Select one:
    12,000
    24,000
    4,500
    3,600

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