Site MapHelpFeedbackSelf Test Quiz
Self Test Quiz



1

Another name for return on equity is return on total capitalization.
A)True
B)False
2

Asset utilization ratios are intended to measure how efficiently or intensively a firm uses its assets to generate sales.
A)True
B)False
3

The profit margin appears on a common-size income statement.
A)True
B)False
4

While financial statements have many uses outside of the company, they are not useful internally.
A)True
B)False
5

Which one of the following correctly identifies the activity categories found on a statement of cash flows?
A)operating, income statement, financing
B)investment, purchasing, operating
C)financing, operating, income statement
D)operating, financing, investment
E)noncash, financing, investment
6

_____ ratios are designed to determine a firm's long-run ability to meet its obligations.
A)Liquidity
B)Asset-utilization
C)Profitability
D)Financial leverage
E)Market value
7

Which of the following are directly incorporated into the calculation of the Du Pont identity?
I. debt-equity ratio
II. equity multiplier
III. total asset turnover
IV. profit margin

A)I and III only
B)II and III only
C)I, II, and III only
D)I, III, and IV only
E)II, III, and IV only
8

Which one of the following is frequently used as a measure of the cash flow available to meet the financial obligations of a firm?
A)earnings before taxes
B)earnings before taxes and depreciation
C)earnings before interest, taxes, and depreciation
D)net income
E)taxable income
9

Which of the following formulas use sales as the numerator?
I. accounts receivable turnover
II. inventory turnover
III. fixed asset turnover
IV. accounts payable turnover

A)I and II only
B)I and III only
C)II, III, and IV only
D)I, II, and III only
E)I, III, and IV only
10

CatchaTan Co. had net sales of $900,000 and average accounts receivables of $60,000 last year. How long on average does it take its credit customers to pay their bills?
A)6.0 days
B)15.0 days
C)15.3 days
D)24.0 days
E)24.3 days





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Fund of Corporate FinanceOnline Learning Center with Powerweb

Home > Chapter 3 > Self Test Quiz