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22.
A supplier, who requires payment within ten days, should be most
concerned with which one of the following ratios when granting credit?
23.
A firm has an interval measure of 48. This means that the firm has sufficient
liquid assets to do which one of the following?
24.
Ratios that measure a firm's financial leverage are known as _____ ratios.
25.
Which one of the following statements is correct?
26.
If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be
which one of the following?
27.
The cash coverage ratio directly measures the ability of a firm's revenues to
meet which one of its following obligations?
28.
Jasper United had sales of $21,000 in 2011 and $24,000 in 2012. The firm's
current accounts remained constant. Given this information, which one of
the following statements must be true?
29.
The Corner Hardware has succeeded in increasing the amount of goods it
sells while holding the amount of inventory on hand at a constant level.
Assume that both the cost per unit and the selling price per unit also
remained constant. This accomplishment will be reflected in the firm's
financial ratios in which one of the following ways?
30.
Dee's has a fixed asset turnover rate of 1.12 and a total asset turnover rate
of 0.91. Sam's has a fixed asset turnover rate of 1.15 and a total asset
turnover rate of 0.88. Both companies have similar operations. Based on
this information, Dee's must be doing which one of the following?
31.
Ratios that measure how efficiently a firm manages its assets and
operations to generate net income are referred to as _____ ratios.
32.
If a firm produces a twelve percent return on assets and also a twelve
percent return on equity, then the firm:
33.
Which one of the following will decrease if a firm can decrease its operating
costs, all else constant?
34.
Al's has a price-earnings ratio of 18.5. Ben's also has a price-earnings ratio
of 18.5. Which one of the following statements must be true if Al's has a
higher PEG ratio than Ben's?
35.
Tobin's Q relates the market value of a firm's assets to which one of the
following?
36.
The price-sales ratio is especially useful when analyzing firms that have
which one of the following?
37.
Shareholders probably have the most interest in which one of the following
sets of ratios?
38.
Which one of the following accurately describes the three parts of the Du
Pont identity?
39.
An increase in which of the following will increase the return on equity, all
else constant?
I. sales
II. net income
III. depreciation
IV. total equity
40.
Which of the following can be used to compute the return on equity?
I. Profit margin × Return on assets
II. Return on assets × Equity multiplier
III. Net income/Total equity
IV. Return on assets × Total asset turnover
41.
The Du Pont identity can be used to help managers answer which of the
following questions related to a firm's operations?
I. How many sales dollars has the firm generated per each dollar of assets?
II. How many dollars of assets has a firm acquired per each dollar in
shareholders' equity?
III. How much net profit is a firm generating per dollar of sales?
IV. Does the firm have the ability to meet its debt obligations in a timely
manner?
