1. Which of the following is not a category of financial statement ratios?
2. Management’s use of resources can best be evaluated by focusing on measures of:
3. An individual interested in making a judgment about the profitability of a company
should:
4. An entity’s current ratio will be influenced by:
5. A potential creditor’s judgment about granting credit would be most influenced by the
potential customer’s:
6. The comparison of activity measures of different companies is complicated by the fact
that:
7. The inventory turnover calculation:
8. If a firm’s payment terms for sales made on account to its customers were 2/10, n30, the
number of days’ sales in accounts receivable would be expected to be:
9. Asset turnover calculations:
10. When a firm has financial leverage:
11. The dividend payout ratio describes:
12. The price/earnings ratio:
13. If the P/E ratio of a company’s common stock were 12, and its earnings were $2.50 per
common share:
14. Another term for the price/earnings ratio is:
15. A higher P/E ratio means that:
16. When a corporation has both common stock and preferred stock outstanding:
17. A management that wanted to increase the financial leverage of its firm would:
18. If a firm’s debt ratio was 25%, its debt/equity ratio would be:
19. A leveraged buyout refers to:
20. Book value per share of common stock of a manufacturing company:
21. A common size income statement:
22. Financial leverage:
23. Which of the following is(are) an example of a measure of leverage?
24. For the fiscal year ended March 31, 2014, a company reported earnings per share of
$3.25 and cash dividends per share of $0.50. During fiscal 2015, the company had a 3–for-2 stock
split. In the annual report for the fiscal year ended March 31, 2015, earnings per share and cash
dividends for fiscal 2014 would be reported, respectively, as: