財務管理-chapter3-習題參考word

1、Chapter 03 Financial Statements Analysis and Long-Term Planning Answer Key Multiple Choice Questions1. One key reason a long-term financial plan is developed is because: A. the plan determines your financial policy.B. the plan determines your investment policy.C. there

2、are direct connections between achievable corporate growth and the financial policy.D. there is unlimited growth possible in a well-developed financial plan.E. None of the above.Difficulty level: EasyTopic: LONG-TERM PLANNING Type: DEFINITIONS c2. Projected future financial state

3、ments are called: A. plug statements.B. pro forma statements.C. reconciled statements.D. aggregated statements.E. none of the above. Difficulty level: EasyTopic: PRO FORMA STATEMENTSType: DEFINITIONS B3. The percentage of sales method: A. requir

4、es that all accounts grow at the same rate.B. separates accounts that vary with sales and those that do not vary with sales.C. allows the analyst to calculate how much financing the firm will need to support the predicted sales level.D. Both A and B.E. Both B and C.推薦精選 Diff

5、iculty level: MediumTopic: PERCENTAGE OF SALESType: DEFINITIONS E4. A _ standardizes items on the income statement and balance sheet as a percentage of total sales and total assets, respectively. A. tax reconciliation statementB. statement of standardizationC. statement

6、 of cash flowsD. common-base year statementE. common-size statement Difficulty level: EasyTopic: COMMON-SIZE STATEMENTSType: DEFINITIONS E5. Relationships determined from a firm's financial information and used for comparison purposes are known as: A. financial

7、 ratios.B. comparison statements.C. dimensional analysis.D. scenario analysis.E. solvency analysis. ADifficulty level: EasyTopic: FINANCIAL RATIOSType: DEFINITIONS 6. Financial ratios that measure a firm's ability to pay its bills over the short run without und

8、ue stress are known as _ ratios. A. asset managementB. long-term solvencyC. short-term solvencyD. profitabilityE. market value推薦精選 Difficulty level: EasyTopic: SHORT-TERM SOLVENCY RATIOSType: DEFINITIONS C7. The current ratio is measured as: A. 

9、current assets minus current liabilities.B. current assets divided by current liabilities.C. current liabilities minus inventory, divided by current assets.D. cash on hand divided by current liabilities.E. current liabilities divided by current assets.Difficulty level: EasyTopic:

10、 CURRENT RATIOType: DEFINITIONS B8. The quick ratio is measured as: A. current assets divided by current liabilities.B. cash on hand plus current liabilities, divided by current assets.C. current liabilities divided by current assets, plus inventory.D. current asse

11、ts minus inventory, divided by current liabilities.E. current assets minus inventory minus current liabilities. Difficulty level: EasyTopic: QUICK RATIOType: DEFINITIONS D9. The cash ratio is measured as: A. current assets divided by current liabilities.B. current

12、assets minus cash on hand, divided by current liabilities.C. current liabilities plus current assets, divided by cash on hand.D. cash on hand plus inventory, divided by current liabilities.E. cash on hand divided by current liabilities.推薦精選 Difficulty level: MediumTopic: CASH RAT

13、IOType: DEFINITIONS E10.  Ratios that measure a firm's financial leverage are known as _ ratios. A. asset managementB. long-term solvencyC. short-term solvencyD. profitabilityE. market valueDifficulty level: EasyTopic: LONG-TERM SOLVENCY RATIOSType: DEFINI

14、TIONS B11. The financial ratio measured as total assets minus total equity, divided by total assets, is the: A. total debt ratio.B. equity multiplier.C. debt-equity ratio.D. current ratio.E. times interest earned ratio. Difficulty level: EasyTopic: TOTAL

15、DEBT RATIOType: DEFINITIONS A12. The debt-equity ratio is measured as total: A. equity minus total debt.B. equity divided by total debt.C. debt divided by total equity.D. debt plus total equity.E. debt minus total assets, divided by total equity.推薦精選 Diff

16、iculty level: EasyTopic: DEBT-EQUITY RATIOType: DEFINITIONS C13. The equity multiplier ratio is measured as total: A. equity divided by total assets.B. equity plus total debt.C. assets minus total equity, divided by total assets.D. assets plus total equity, divided

17、 by total debt.E. assets divided by total equity. Difficulty level: MediumTopic: EQUITY MULTIPLIERType: DEFINITIONS 14. The financial ratio measured as earnings before interest and taxes, divided by interest expense is the: A. cash coverage ratio.B. debt-equity rat

18、io.C. times interest earned ratio.D. gross margin.E. total debt ratio. Difficulty level: MediumTopic: TIMES INTEREST EARNED RATIOType: DEFINITIONS 15. The financial ratio measured as earnings before interest and taxes, plus depreciation, divided by interest expense, is

19、the: A. cash coverage ratio.B. debt-equity ratio.C. times interest earned ratio.D. gross margin.E. total debt ratio.推薦精選 Difficulty level: MediumTopic: CASH COVERAGE RATIOType: DEFINITIONS 16. Ratios that measure how efficiently a firm uses its assets to

20、generate sales are known as _ ratios. A. asset managementB. long-term solvencyC. short-term solvencyD. profitabilityE. market value Difficulty level: EasyTopic: ASSET MANAGEMENT RATIOSType: DEFINITIONS 17. The inventory turnover ratio is measured as: 

21、;A. total sales minus inventory.B. inventory times total sales.C. cost of goods sold divided by inventory.D. inventory times cost of goods sold.E. inventory plus cost of goods sold. Difficulty level: MediumTopic: INVENTORY TURNOVERType: DEFINITIONS 18. The fin

22、ancial ratio days' sales in inventory is measured as: A. inventory turnover plus 365 days.B. inventory times 365 days.C. inventory plus cost of goods sold, divided by 365 days.D. 365 days divided by the inventory.E. 365 days divided by the inventory turnover.推薦精選

23、60;Difficulty level: MediumTopic: DAYS' SALES IN INVENTORYType: DEFINITIONS 19. The receivables turnover ratio is measured as: A. sales plus accounts receivable.B. sales divided by accounts receivable.C. sales minus accounts receivable, divided by sales.D. acco

24、unts receivable times sales.E. accounts receivable divided by sales. Difficulty level: MediumTopic: RECEIVABLES TURNOVERType: DEFINITIONS 20. The financial ratio days' sales in receivables is measured as: A. receivables turnover plus 365 days.B. accounts receiv

25、able times 365 days.C. accounts receivable plus sales, divided by 365 days.D. 365 days divided by the receivables turnover.E. 365 days divided by the accounts receivable. Difficulty level: MediumTopic: DAYS' SALES IN RECEIVABLESType: DEFINITIONS 21. The total asset

26、turnover ratio is measured as: A. sales minus total assets.B. sales divided by total assets.C. sales times total assets.D. total assets divided by sales.E. total assets plus sales.推薦精選 Difficulty level: EasyTopic: TOTAL ASSET TURNOVERType: DEFINITIONS 22. 

27、;Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _ ratios. A. asset managementB. long-term solvencyC. short-term solvencyD. profitabilityE. market value Difficulty level: EasyTop

28、ic: PROFITABILITY RATIOSType: DEFINITIONS 23. The financial ratio measured as net income divided by sales is known as the firm's: A. profit margin.B. return on assets.C. return on equity.D. asset turnover.E. earnings before interest and taxes. Difficu

29、lty level: EasyTopic: PROFIT MARGINType: DEFINITIONS 24. The financial ratio measured as net income divided by total assets is known as the firm's: A. profit margin.B. return on assets.C. return on equity.D. asset turnover.E. earnings before interest and t

30、axes.推薦精選 Difficulty level: EasyTopic: RETURN ON ASSETSType: DEFINITIONS 25. The financial ratio measured as net income divided by total equity is known as the firm's: A. profit margin.B. return on assets.C. return on equity.D. asset turnover.E. earni

31、ngs before interest and taxes. Difficulty level: EasyTopic: RETURN ON EQUITYType: DEFINITIONS 26. The financial ratio measured as the price per share of stock divided by earnings per share is known as the: A. return on assets.B. return on equity.C. debt-equity rati

32、o.D. price-earnings ratio.E. Du Pont identity. Difficulty level: EasyTopic: PRICE-EARNINGS RATIOType: DEFINITIONS 27. The market-to-book ratio is measured as: A. total equity divided by total assets.B. net income times market price per share of stock.C. n

33、et income divided by market price per share of stock.D. market price per share of stock divided by earnings per share.E. market value of equity per share divided by book value of equity per share.推薦精選 Difficulty level: MediumTopic: MARKET-TO-BOOK RATIOType: DEFINITIONS 28. T

34、he _ breaks down return on equity into three component parts. A. Du Pont identityB. return on assetsC. statement of cash flowsD. asset turnover ratioE. equity multiplier Difficulty level: MediumTopic: DU PONT IDENTITYType: DEFINITIONS 29. The External Fun

35、ds Needed (EFN) equation does not measure the: A. additional asset requirements given a change in sales.B. additional total liabilities raised given the change in sales.C. rate of return to shareholders given the change in sales.D. net income expected to be earned given the

36、change in sales.E. None of the above.Difficulty level: MediumTopic: EXTERNAL FUNDS NEEDEDType: DEFINITIONS 30. To calculate sustainable growth rate without using return on equity, the analyst needs the: A. profit margin.B. payout ratio.C. debt-to-equity ratio.D.

37、60;total asset turnover.E. All of the above.推薦精選Difficulty level: MediumTopic: SUSTAINABLE GROWTH RATEType: DEFINITIONS 31. Growth can be reconciled with the goal of maximizing firm value: A. because greater growth always adds to value.B. because growth must be an outco

38、me of decisions that maximize NPV.C. because growth and wealth maximization are the same.D. because growth of any type cannot decrease value.E. None of the above. Difficulty level: MediumTopic: GROWTHType: DEFINITIONS 32. Sustainable growth can be determined by the:

39、0;A. profit margin, total asset turnover and the price to earnings ratio.B. profit margin, the payout ratio, the debt-to-equity ratio, and the asset requirement or asset turnover ratio.C. Total growth less capital gains growth.D. Either A or B.E. None of the above. Diff

40、iculty level: MediumTopic: SUSTAINABLE GROWTHType: DEFINITIONS 33. Which of the following will increase sustainable growth? A. Buy back existing stockB. Decrease debtC. Increase profit marginD. Increase asset requirement or asset turnover ratioE. Increase divi

41、dend payout ratio推薦精選 Difficulty level: MediumTopic: SUSTAINABLE GROWTHType: DEFINITIONS 34. The main objective of long-term financial planning models is to: A. determine the asset requirements given the investment activities of the firm.B. plan for contingencies or unc

42、ertain events.C. determine the external financing needs.D. All of the above.E. None of the above. Difficulty level: MediumTopic: LONG-TERM PLANNINGType: DEFINITIONS 35. On a common-size balance sheet, all _ accounts are shown as a percentage of _. A. income; t

43、otal assetsB. liability; net incomeC. asset; salesD. liability; total assetsE. equity; sales Difficulty level: MediumTopic: COMMON-SIZE BALANCE SHEETType: DEFINITIONS 36. Which one of the following statements is correct concerning ratio analysis? A. A sin

44、gle ratio is often computed differently by different individuals.B. Ratios do not address the problem of size differences among firms.C. Only a very limited number of ratios can be used for analytical purposes.D. Each ratio has a specific formula that is used consistently by all analy

45、sts.E. Ratios can not be used for comparison purposes over periods of time.推薦精選Difficulty level: MediumTopic: RATIO ANALYSISType: DEFINITIONS 37. Which of the following are liquidity ratios?I. cash coverage ratioII. current ratioIII. quick ratioIV. inventory turnover A. II a

46、nd III onlyB. I and II onlyC. II, III, and IV onlyD. I, III, and IV onlyE. I, II, III, and IV Difficulty level: MediumTopic: LIQUIDITY RATIOSType: DEFINITIONS 38. An increase in which one of the following accounts increases a firm's current ratio without affect

47、ing its quick ratio? A. accounts payableB. cashC. inventoryD. accounts receivableE. fixed assets Difficulty level: MediumTopic: LIQUIDITY RATIOSType: DEFINITIONS 39. A supplier, who requires payment within ten days, is most concerned with which one of the

48、 following ratios when granting credit? A. currentB. cashC. debt-equityD. quickE. total debt推薦精選Difficulty level: MediumTopic: LIQUIDITY RATIOSType: DEFINITIONS 40. A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every:

49、 A. $1 in equity.B. $1 in total sales.C. $1 in current assets.D. $.53 in equity.E. $.53 in total assets. Difficulty level: MediumTopic: LONG-TERM SOLVENCY RATIOSType: DEFINITIONS 41. The long-term debt ratio is probably of most interest to a firm's:&#

50、160;A. credit customers.B. employees.C. suppliers.D. mortgage holder.E. shareholders. Difficulty level: MediumTopic: LONG-TERM SOLVENCY RATIOSType: DEFINITIONS 42. A banker considering loaning a firm money for ten years would most likely prefer the firm have a

51、 debt ratio of _ and a times interest earned ratio of _. A. .75; .75B. .50; 1.00C. .45; 1.75D. .40; 2.50E. .35; 3.00推薦精選Difficulty level: MediumTopic: LONG-TERM SOLVENCY RATIOSType: DEFINITIONS 43. From a cash flow position, which one of the following ratios b

52、est measures a firm's ability to pay the interest on its debts? A. times interest earned ratioB. cash coverage ratioC. cash ratioD. quick ratioE. Interval measureDifficulty level: MediumTopic: LONG-TERM SOLVENCY RATIOSType: DEFINITIONS 44. The higher the i

53、nventory turnover measure, the: A. faster a firm sells its inventory.B. faster a firm collects payment on its sales.C. longer it takes a firm to sell its inventory.D. greater the amount of inventory held by a firm.E. lesser the amount of inventory held by a firm.Difficu

54、lty level: MediumTopic: ASSET MANAGEMENT RATIOSType: DEFINITIONS 45. Which one of the following statements is correct if a firm has a receivables turnover measure of 10? A. It takes a firm 10 days to collect payment from its customers.B. It takes a firm 36.5 days to sell its

55、 inventory and collect the payment from the sale.C. It takes a firm 36.5 days to pay its creditors.D. The firm has an average collection period of 36.5 days.E. The firm has ten times more in accounts receivable than it does in cash.推薦精選 Difficulty level: MediumTopic: ASSET MANAGE

56、MENT RATIOSType: DEFINITIONS 46. A total asset turnover measure of 1.03 means that a firm has $1.03 in: A. total assets for every $1 in cash.B. total assets for every $1 in total debt.C. total assets for every $1 in equity.D. sales for every $1 in total assets.E.&#

57、160;long-term assets for every $1 in short-term assets. Difficulty level: MediumTopic: ASSET MANAGEMENT RATIOSType: DEFINITIONS 47. Puffy's Pastries generates five cents of net income for every $1 in sales. Thus, Puffy's has a _ of 5%. A. return on assetsB. retu

58、rn on equityC. profit marginD. Du Pont measureE. total asset turnover Difficulty level: MediumTopic: PROFITABILITY RATIOSType: DEFINITIONS 48. If a firm produces a 10% return on assets and also a 10% return on equity, then the firm: A. has no debt of any kind.

59、B. is using its assets as efficiently as possible.C. has no net working capital.D. also has a current ratio of 10.E. has an equity multiplier of 2.推薦精選 Difficulty level: MediumTopic: PROFITABILITY RATIOSType: DEFINITIONS 49. If shareholders want to know how much pr

60、ofit a firm is making on their entire investment in the firm, the shareholders should look at the: A. profit margin.B. return on assets.C. return on equity.D. equity multiplier.E. earnings per share. Difficulty level: MediumTopic: PROFITABILITY RATIOSType: DEFINITI

61、ONS 50. BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the: A. return on equity will increase.B. return on assets will decrease.C. profit margin will decline.D. equity m

62、ultiplier will decrease.E. price-earnings ratio will increase. Difficulty level: MediumTopic: PROFITABILITY RATIOSType: DEFINITIONS 51. The only difference between Joe's and Moe's is that Joe's has old, fully depreciated equipment. Moe's just purchased all new equ

63、ipment which will be depreciated over eight years. Assuming all else equal: A. Joe's will have a lower profit margin.B. Joe's will have a lower return on equity.C. Moe's will have a higher net income.D. Moe's will have a lower profit margin.E. Moe's

64、will have a higher return on assets.推薦精選 Difficulty level: MediumTopic: PROFITABILITY RATIOSType: DEFINITIONS 52. Last year, Alfred's Automotive had a price-earnings ratio of 15. This year, the price earnings ratio is 18. Based on this information, it can be stated with certainty tha