1. Question: Which financial statement best allows a firm to assess its ability to pay dividends?

    A
    Statement of Cash Flows

    B
    Income Statement

    C
    Balance Sheet

    D
    Statement of Retained Earnings

    E
    Statement of Operations

    Note: Not available
    1. Report
  2. Question: How often can a company change its inventory valuation methodology and still be compliant with GAAP?

    A
    Once per month

    B
    Anytime, there are no rules

    C
    Once per year, but not every year

    D
    Never, you decide once and only once

    Note: Not available
    1. Report
  3. Question: Which security makes up the majority of external financing for corporations?

    A
    Common stock

    B
    Preferred stock

    C
    Bank loans

    D
    Bonds

    E
    Venture capital funds

    Note: Not available
    1. Report
  4. Question: What type of analysis will describe how changes in volume affect costs and profits?

    A
    Trend analysis

    B
    Break even analysis

    C
    Common size analysis

    D
    Ratio analysis

    E
    DuPont analysis

    Note: Not available
    1. Report
  5. Question: The three sections of a Statement of Cash Flows are _____.

    A
    Leverage, liquidity, financing

    B
    Operating, investing, profit

    C
    Operating, investing, financing

    D
    Sales, investing, financing

    E
    Operating, investing, borrowing

    Note: Not available
    1. Report
  6. Question: What is the DuPont analysis?

    A
    Breaks Return on Equity into 3 pieces: Operating Efficiency, Asset Use Efficiency, Financial Leverage

    B
    An analysis created by the DuPont paint company

    C
    A ratio analysis style based on factors beyond the financial numbers

    D
    A modified cash flow analysis

    Note: Not available
    1. Report
  7. Question: How does Cash Flow Return on Investment differ from most financial ratios?

    A
    It is the only ratio involving cash flow

    B
    It can be calculated from the income statement

    C
    It assumes the stock market sets prices based on cash flow, not profitability

    D
    It is the only ratio where a negative number is a good result

    Note: Not available
    1. Report
  8. Question: Which cash collection technique is the most cost-effective for companies with many locations?

    A
    Self-addressed stamped envelopes

    B
    Centralized collection system

    C
    Lockbox system

    D
    Using a post office box

    E
    Regional collection offices

    Note: Not available
    1. Report
  9. Question: What is the purpose of measuring stability?

    A
    To determine if management is being ethical

    B
    To determine if the company has an adequate product mix

    C
    To determine the firm's ability to stay in business in the long run

    D
    To determine if the company has too many high level executives

    Note: Not available
    1. Report
  10. Question: Retained earnings will change over time because of several factors. Which of the following factors would lead to an increase in the Retained Earnings?

    A
    Net loss

    B
    Net income

    C
    Dividends

    D
    Investments by stockholders

    Note: Not available
    1. Report
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