Finance And Accounting

Question: Financial leverage can increase the return to common shareholders as long as ______________.
A
the rate of return earned on assets equals the rate paid for the capital used to acquire those assets

B
the rate of return earned on assets is less than the rate paid for the capital used to acquire those assets

C
the rate of return earned on assets exceeds the rate paid for the capital used to acquire those assets

D
the firm has a "good" earnings year

Note: Answer not sure
1. Report
Question: The Rate of Return on Assets can be disaggregated into two other ratios. Which of the following is one of the two ratios?
A
Fixed Asset Turnover Ratio

B
Debt-Equity Ratio

C
Profit Margin Ratio

D
Inventory Turnover Ratio

Note: Answer not sure
1. Report
Question: A company wants to increase its rate of return on assets from 8 percent to 14 percent. It is believed that the firm's total assets turnover of .667 cannot be easily increased at the present time. What must the profit margin percentage be to achieve the desired 14 percent rate of return on assets?
A
7 percent

B
14 percent

C
21 percent

D
28 percent

Note: Answer not sure
1. Report
Question: The ______________ is the sequence of activities in which inventory is purchased on account from suppliers, inventory is sold on account to customers, customers pay the amounts due, and suppliers are paid the amounts due to them.
A
Operating Cycle

B
Cash Inflow

C
Accounts Receivable Cycle

D
Accounts Payable Cycle

Note: Answer not sure
1. Report
Question: Outflows of assets used up in generating revenue are called ______________.
A
Liabilities

B
Retained Earnings

C
Expenses

D
Revenues

Note: Answer not sure
1. Report
Question: Financial statements that are prepared using a particular set of assumptions are called ___________________.
A
Income Statements

B
Tax Liability Statements

C
Pro-Forma Financial Statements

D
Retained Earnings

Note: Answer not sure
1. Report
Question: Which of the following is NOT a measure of profitability?
A
Rate of Return on Assets

B
Accounts Payable Turnover Ratio

C
Rate of Return on Common Shareholders' Equity

D
Earnings Per Common Share

Note: Answer not sure
1. Report
Question: The _______________ indicates the proportion of total capital supplied by creditors.
A
Gross Margin

B
Debt-Equity Ratio

C
Inventory Turnover Ratio

D
Asset Turnover Ratio

Note: Answer not sure
1. Report
Question: Revenues are a measure of the inflows of assets (or reductions in liabilities) from selling goods and providing services to customers. Which of the following is NOT a revenue transaction?
A
Sale of merchandise for cash to a customer

B
Sale of merchandise on account to a customer

C
Delivery of weekly magazines to a subscriber who previously paid for a one-year subscription

D
Borrowing money from a local bank to be used in the business

Note: Answer not sure
1. Report
Question: Which of the following ratios uses sales in its numerator?
A
Total Assets Turnover Ratio

B
Profit Margin Ratio

C
Fixed Asset Turnover Ratio

D
Both a & c

Note: Answer not sure
1. Report

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Question: Financial leverage can increase the return to common shareholders as long as ______________.

Question: The Rate of Return on Assets can be disaggregated into two other ratios. Which of the following is one of the two ratios?

Question: The ______________ is the sequence of activities in which inventory is purchased on account from suppliers, inventory is sold on account to customers, customers pay the amounts due, and suppliers are paid the amounts due to them.

Question: Outflows of assets used up in generating revenue are called ______________.

Question: Financial statements that are prepared using a particular set of assumptions are called ___________________.

Question: Which of the following is NOT a measure of profitability?

Question: The _______________ indicates the proportion of total capital supplied by creditors.

Question: Revenues are a measure of the inflows of assets (or reductions in liabilities) from selling goods and providing services to customers. Which of the following is NOT a revenue transaction?

Question: Which of the following ratios uses sales in its numerator?