Financial Analysis, Finance And Accounting

Question: Which of the following is a flaw with financial analysis?
A
Each company uses different formulas to calculate the ratios

B
Ratios are too difficult to calculate and require a specialist

C
Auditors do not look at financial ratios

D
One ratio alone does not tell much about the entire financial situation of a company

Note: Not available
1. Report
Question: What does the Price to Earnings (P/E) ratio demonstrate?
A
The price of the company's products relative to how much they earn on the sale of those products

B
A company's stock price relative to its earnings. Higher growth companies have higher P/E ratios

C
The prices paid for goods relative to how much the company earns on those goods

D
The ability of a company to pay dividends

Note: Not available
1. Report
Question: Which of the following is not a part of cost of goods sold?
A
Raw material

B
Labor

C
Capital

D
All of the above are part of cost of goods sold

Note: Not available
1. Report
Question: What is the purpose of measuring solvency?
A
To determine a firm's ability to pay its creditors in the long term

B
To determine a firm's ability to pay its creditors in the short term

C
To measure a firm's cash flow turnover

D
To measure a firm's current assets to current liabilities

Note: Not available
1. Report
Question: If a company has a high P/E ratio relative to it's competitors ____.
A
it is expected to grow more rapidly

B
the analyst has inside information

C
it has a bad year for earnings, making the denominator smaller, and the P/E ratio higher

D
everyone should invest in this stock and not the competitor's

Note: Not available
1. Report
Question: Financial managers use the _____________ to plan for monthly financing needs.
A
capital budget

B
cash budget

C
pro forma

D
income statement

Note: Not available
1. Report
Question: With which of the following regulatory bodies would a publicly traded company be much more involved than a private company would be?
A
SEC

B
GAAP

C
IRS

D
FCC

Note: Not available
1. Report
Question: Which of the following transactions would have no impact on the stockholder's equity?
A
Purchase of land from the proceeds of a bank loan

B
Dividends to stockholders

C
Net loss

D
Investments in cash by stockholders

Note: Not available
1. Report
Question: Which of the following is a flaw with financial analysis?
A
It is complicated

B
Changes in accounting policy can drastically affect the results of a ratio, making comparison analysis difficult

C
Companies are required by law to do it, even when they do not want to

D
Errors are inherent in financial analysis, rendering it useless

Note: Not available
1. Report
Question: What is historical value?
A
Prices adjusted for inflation

B
The current sale value of an asset

C
The original cost or price paid for an asset

D
The average value of an asset

Note: Not available
1. Report

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Question: Which of the following is a flaw with financial analysis?

Question: What does the Price to Earnings (P/E) ratio demonstrate?

Question: Which of the following is not a part of cost of goods sold?

Question: What is the purpose of measuring solvency?

Question: If a company has a high P/E ratio relative to it's competitors ____.

Question: Financial managers use the _____________ to plan for monthly financing needs.

Question: With which of the following regulatory bodies would a publicly traded company be much more involved than a private company would be?

Question: Which of the following transactions would have no impact on the stockholder's equity?

Question: Which of the following is a flaw with financial analysis?

Question: What is historical value?