1. 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
  2. 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
  3. 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
  4. Question: Which is the primary financial statement used to measure profitability?

    A
    Balance Sheet

    B
    Income Statement

    C
    Cash Flow Statement

    D
    Statement of Retained Earnings

    Note: Not available
    1. Report
  5. Question: What is operating leverage defined as?

    A
    Extent to which variable costs are utilized

    B
    Extent to which fixed assets are utilized

    C
    Extent to which fixed assets and fixed costs are utilized

    D
    Extent to which fixed costs are utilized

    E
    Extent to which prices change

    Note: Not available
    1. Report
  6. Question: Which report does a publicly traded company file quarterly with the SEC?

    A
    8K

    B
    10K

    C
    10Q

    D
    Prospectus

    Note: Not available
    1. Report
  7. Question: 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 expected return for this firm ?

    A
    $75,000

    B
    $60,000

    C
    $53,000

    D
    $40,000

    E
    $20,000

    Note: Not available
    1. Report
  8. Question: What is one caveat when calculating ROA and comparing to other companies?

    A
    Asset values change over time

    B
    Carrying value of assets may be valued differently (historical, market) by different companies

    C
    Liabilities vary month to month making this ratio difficult to track accurately

    D
    Every financial analyst calculates it differently making comparison useless

    Note: Not available
    1. Report
  9. Question: Which is/are the primary financial statements used to measure stability?

    A
    Balance Sheet

    B
    Income Statement

    C
    Balance Sheet and Income Statement

    D
    Statement of Cash Flows and Income Statement

    Note: Not available
    1. Report
  10. Question: Which ratio would you use to assess a company's ability to pay bills?

    A
    Interest coverage ratio

    B
    Times interest earned ratio

    C
    Price earnings ratio

    D
    Current ratio

    E
    Profit margin

    Note: Not available
    1. Report
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