Week 9 – Chapters 11, 12, 13, and 14 Quiz
The actual disbursement of cash is recorded in which of the following financial statements?
statement of cash flows
A statement that expresses the income statement items as a percent of total sales is called:
a percentage of sales income statement
a cross-sectional income statement
a common size income statement
a ratio based income statement
In an efficient market:
it is fairly easy to find stocks whose prices do not fairly reflect the present value of future expected cash flows
expected news will cause a rapid change in prices
information flows are random, both in timing and in content
all the above
The 2002 Sarbanes-Oxley Act and actions by the stock exchanges:
limit the compensation that could be paid to CEOs.
increase the number of independent directors on corporate Boards.
provide uniform international accounting standards
none of the above
If a firm has sales of $100, total expenses (including interest and taxes) of $50, has a stock that is selling at $50 per share and has 10 shares of stock outstanding, then the firm has a P/E ratio of:
Ningbo Steel had year end 2011 and 2012 retained earnings balances of $5,000,000 and $6,000,000 respectively. The firm paid $100,000 of dividends in 2012. Based on this information, Ningbo Steel’s net profit after taxes in 2012 was:
A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm’s operating breakeven point in units is
As part of the measurement of financial leverage, the total debt ratio is calculated as:
total liabilities divided by total assets
total liabilities times total assets
current liabilities divided by total assets
total assets minus current liabilities divided by total liabilities divided by total liabilities
If a firm’s sales are $2,000,000, its cost of goods sold is $1,500,000, and its total assets are $1,000,000, what is total asset turnover?
A market has ________ if it can absorb large orders without disrupting prices; it has ___________ if it has many trades.
liquidity, quick execution
quick execution, liquidity
A market is liquid if
trades are executed quickly.
market prices don’t fluctuate sharply on successive trades
both a) and b) are correct.
if fees are low.
Which of the following is not required to compute the expected return of a three-asset portfolio?
the amount invested in each stock
the correlation between the returns on each stock
the expected return on each stock
all of the above are required
_____________ costs are a function of quantity sold, not time.
(Cash + Marketable securities + Accounts receivable) ∕ Current liabilities
Average payment period
The maximum buying price or the minimum selling price specified by the investor is called a:
All of the following accounts are considered to be current assets on the balance sheet except:
Responsible for the controller and the treasury functions of a firm.
Chief financial officer
Which of the following would not be considered in the fixed charge coverage ratio?
sinking fund payments
lease payments Rent payments
Using the DuPont system of analysis and holding other factors constant, decrease in total asset turnover will result in ________ in the return on equity.
an undetermined change
Which of the following would not be included on the balance sheet?
capital paid in excess of par