analysis of financial statement

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Low price for earning ratio is result of

Low price for earning ratio is result of
  • A. low risky firms
  • B. high risky firms
  • C. low dividends paid
  • D. high marginal rate
  • Correct Answer: Option A

Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be

Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be
  • A. 0.07%
  • B. 7.14%
  • C. 0.05 times
  • D. 7.15 times
  • Correct Answer: Option B

Profit margin multiply assets turnover multiply equity multiplier is used to calculate

Profit margin multiply assets turnover multiply equity multiplier is used to calculate
  • A. return on turnover
  • B. return on stock
  • C. return on assets
  • D. return on equity
  • Correct Answer: Option D

Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be

Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be
  • A. $22,275
  • B. 15.71%
  • C. 1.93%
  • D. 1.925 times
  • Correct Answer: Option B

An equity multiplier is multiplied to return on assets to calculate

An equity multiplier is multiplied to return on assets to calculate
  • A. return on assets
  • B. return on multiplier
  • C. return on turnover
  • D. return on stock
  • Correct Answer: Option A

Price per share is $25 and cash flow per share is $6 then price to cash flow ratio would be

Price per share is $25 and cash flow per share is $6 then price to cash flow ratio would be
  • A. 0.24 times
  • B. 4.16 times
  • C. 4.16%
  • D. 24%
  • Correct Answer: Option B

A techniques uses to identify financial statements trends are included

A techniques uses to identify financial statements trends are included
  • A. common size analysis
  • B. percent change analysis
  • C. returning ratios analysis
  • D. Both A and B
  • Correct Answer: Option D

Price per share divided by earnings per share is formula for calculating

Price per share divided by earnings per share is formula for calculating
  • A. price earning ratio
  • B. earning price ratio
  • C. pricing ratio
  • D. earning ratio
  • Correct Answer: Option A

Price earning ratio and price by cash flow ratio are classified as

Price earning ratio and price by cash flow ratio are classified as
  • A. marginal ratios
  • B. equity ratios
  • C. return ratios
  • D. market value ratios
  • Correct Answer: Option D

Process of comparing company results with other leading firms is considered as

Process of comparing company results with other leading firms is considered as
  • A. comparison
  • B. analysis
  • C. benchmarking
  • D. return analysis
  • Correct Answer: Option C

Price per share is $30 and an earning per share is $3.5 then price for earning ratio would be

Price per share is $30 and an earning per share is $3.5 then price for earning ratio would be
  • A. 8.57 times
  • B. 8.57%
  • C. 0.11 times
  • D. 11%
  • Correct Answer: Option A

Price per ratio is divided by cash flow per share ratio which is used for calculating

Price per ratio is divided by cash flow per share ratio which is used for calculating
  • A. dividend to stock ratio
  • B. sales to growth ratio
  • C. cash flow to price ratio
  • D. price to cash flow ratio
  • Correct Answer: Option D

Total assets divided common equity is a formula uses for calculating

Total assets divided common equity is a formula uses for calculating
  • A. equity multiplier
  • B. graphical multiplier
  • C. turnover multiplier
  • D. stock multiplier
  • Correct Answer: Option A

An equation in which total assets are multiplied to profit margin is classified as

An equation in which total assets are multiplied to profit margin is classified as
  • A. du DuPont equation
  • B. turnover equation
  • C. preference equation
  • D. common equation
  • Correct Answer: Option A

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be
  • A. 16.75%
  • B. 2.68%
  • C. 0.37%
  • D. 9.20%
  • Correct Answer: Option A

Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be

Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be
  • A. 0.11%
  • B. 11.40%
  • C. 0.12 times
  • D. 12%
  • Correct Answer: Option B

Formula such as net income available for common stockholders divided by total assets is used to calculate

Formula such as net income available for common stockholders divided by total assets is used to calculate
  • A. return on total assets
  • B. return on total equity
  • C. return on debt
  • D. return on sales
  • Correct Answer: Option A

Companies that help to set benchmarks are classified as

Companies that help to set benchmarks are classified as
  • A. competitive companies
  • B. benchmark companies
  • C. analytical companies
  • D. return companies
  • Correct Answer: Option B

Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as

Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as
  • A. return ratios
  • B. market value ratios
  • C. marginal ratios
  • D. equity ratios
  • Correct Answer: Option B

High price to earning ratio shows company’s

High price to earning ratio shows company’s
  • A. low dividends paid
  • B. high risk prospect
  • C. high growth prospect
  • D. high marginal rate
  • Correct Answer: Option C
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