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Exam (elaborations)

BUSN 604 Week 3 Quiz | Score 100% | American Military University

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BUSN 604 Week 3 Quiz | Score 100% | American Military University

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Question 10 (5 points) v Saved
Question 1 (5 points) v Saved Question 5 (5 points) v Saved
The profitability ratio that measures the return that shareholders earned on their investment in the firm is
On which of the four major financial statements would you find the common stock and paid-in A firm has a current ratio of 2.0 and a quick ratio of 1.6. If the firm doubles their the:
inventory and intends to pay for it within 30 days of receipt, what will be their new
surplus? current ratio?
Q operating profit margin
@ balance sheet O1s O net profit margin
O 4
Q income statement
@ return on equity

O statement of cash flows O 3.6
Q return on assets
O statement of retained earnings @171 Question 11 (5 points) v Saved
As part of the measurement of financial leverage, the total debt ratio is calculated as:
Question 2 (5 points) v Saved Question
6 (5 points) v Saved
@ total liabilities divided by total assets
Which of the following are considered to be major financial management functions? Owners' equity may include:
O total assets minus current liabilities divided by total liabilities divided by total liabilities

O financial planning and analysis O par value of the common stock
O total liabilities times total assets

O asset management
O retained earnings
O current liabilities divided by total assets
O capital paid in excess of par account
O raising funds Question 12 (5 points) v Saved
@ all the above
@ all of the above Cash flows from operating activities might include:
O none of the above
Q none of the above @ net income
Question 7 (5 points) v Saved
O increase in equity sold to investors
Question3 (5 points) v Saved The primary purpose of the liquidity ratios is to determine:
O dividend payment
Which one of the following financial statements shows a relationship between asset: O the extent to which borrowed funds are used to finance assets
() all the above
and liabilities plus owners' equity?
@ the ability of the firm to meet short-term obligations to creditors
O none of the above
O income statement Q the extent to which assets are used to support sales
Question 13 (5 points) v Saved
O none of the above
O statement of cash flows The price/earnings ratio (P/E) is calculated as:

@ balance sheet Question 8 (5 points) v Saved
@ stock price divided by earnings per share
O statement of retained earnings Financial statement analysis involves evaluating the trends and relationships among
O stock price times earnings per share
items on financial statements to assess a company's financial health.
Question
4 (5 points) v Saved O earnings per share divided by stock price
(®) True
stock price divided by the difference between earnings per share and cash
The financial statement that provides a snapshot view of the financial condition of a () False dividends per share
business at a point in time is the:
Question 9 (5 points) v Saved Question 14 (5 points) v Saved

On which of the four major financial statements would you find net plant and equipment? Which of the following accounts is usually part of the owners' equity for a
@ balance sheet
corporation?
O income statement @ balance sheet

O income statement
O common stock
O statement of cash flows
O paid-in-capital
O statement of cash flows
Q statement of retained earnings
() statement of retained earnings Q retained earnings

@ all of the above

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