ACC205 Week 5 – Quiz: Chapter 9
This attempt took 3 minutes.
Question 1
1 / 1 pts
Common-size financial statements means___________________.
there is nothing outside the ordinary
Correct!
scaling the dollar amounts within the financial statements to percentage terms
all information must fit on one page
nothing, that is not a term used with financial statements or analysis
Question 2
1 / 1 pts
Vertical analysis of a financial statement involves_______________.
analyzing one period of financial data to another
setting total assets as the base (100%) figure
setting net income as the base (100%) figure
measuring each expense category as a percentage of sales
Question 3
1 / 1 pts
Horizontal analysis of a financial statement involves______________.
analyzing one period of financial data to another
setting total assets as the base (100%) figure
all of the items listed here
analyzing trends
Question 4
1 / 1 pts
Which of the following would not be considered a liquidity ratio?
Times interest earned
Quick ratio
Working capital
Current ratio
Question 5
1 / 1 pts
Which of the following would not be considered a debt service ratio?
Times interest earned
Debt to total assets
Debt to equity
All of these are considered debt service ratios
Question 6
1 / 1 pts
Turnover analysis indicates______________.
how a firm turns over a new leaf
a firm’s ability to make money
a firm’s ability to collect receivables
expenses associated with operating the firm’s core business functions
Question 7
1 / 1 pts
Gross profit margin_________________.
examines profitability in relation to sales
examines profitability in relation to cost of goods sold
examines profitability in relation to total assets employed
examines profitability in relation to debt undertaken
Question 8
1 / 1 pts
Earnings per share (EPS) is considered to be________________.
a debt service ratio
a liquidity ratio
a profitability ratio
an activity ratio
Question 9
1 / 1 pts
Dividend yield is determined by___________________________.
dividing assets by liabilities
dividing the annual cash dividend by the market price per share of the company stock
dividing the market price per share of the company stock by the annual cash dividend
dividing liabilities by assets
Question 10
1 / 1 pts
Book value per share___________________.
measures the value of an asset less depreciation
measures the firm’s ability to service debt
measures the sales value of the company to a potential purchaser
measures the amount of stockholders equity represented by each share of common stock
Quiz Score: 10 out of 10
ACC205 Week 5 – Quiz: Chapter 9 Answer
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