©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
CFIN Chapters 1-7 SAQ Exam Questions
With Verified Answers
Which ratio shows the average percentage by which sales price exceeds the cost of goods sold?
Select one:
a. profit margin
b. asset turnover
c. gross margin
d. receivables turnover
e. return on assets - Answers✔gross margin
Matching refers to including all expenses incurred to realize the revenues reported.
Select one:
a. TRUE
b. FALSE - Answers✔TRUE
Net Income is a part of
Select one:
a. Cash flow from operating expenses
b. Cash flow from investing activities
c. Cash flow from debt activities
d. None of the above - Answers✔cash flow from operating expenses
Depreciation is a noncash expense.
Select one:
a. TRUE
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
b. FALSE - Answers✔TRUE
Although the cash flow statement using the indirect method is useful, it does not show net
income for the period.
Select one:
a. TRUE
b. FALSE - Answers✔FALSE
Which of the following measures a firms's profitability and asset usage skill?
Select one:
a. Liquidity ratios
b. Operating performance ratios
c. Financial strength ratios
d. None of the above - Answers✔operating performance ratios
Which of the following statements fulfills a firm's requirement to disclose its earnings for a
period?
Select one:
a. Statement of Financial Position
b. Income Statement
c. Inventory Statement
d. Cash Flow Statement - Answers✔income statement
Which of the following ratios measure liquidity?
Select one:
a. debt to equity
b. current
c. quick
d. B & C
e. None of the above - Answers✔b and c
Comprehensive Income of the period is shown on the
ALL RIGHTS RESERVED.
CFIN Chapters 1-7 SAQ Exam Questions
With Verified Answers
Which ratio shows the average percentage by which sales price exceeds the cost of goods sold?
Select one:
a. profit margin
b. asset turnover
c. gross margin
d. receivables turnover
e. return on assets - Answers✔gross margin
Matching refers to including all expenses incurred to realize the revenues reported.
Select one:
a. TRUE
b. FALSE - Answers✔TRUE
Net Income is a part of
Select one:
a. Cash flow from operating expenses
b. Cash flow from investing activities
c. Cash flow from debt activities
d. None of the above - Answers✔cash flow from operating expenses
Depreciation is a noncash expense.
Select one:
a. TRUE
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
b. FALSE - Answers✔TRUE
Although the cash flow statement using the indirect method is useful, it does not show net
income for the period.
Select one:
a. TRUE
b. FALSE - Answers✔FALSE
Which of the following measures a firms's profitability and asset usage skill?
Select one:
a. Liquidity ratios
b. Operating performance ratios
c. Financial strength ratios
d. None of the above - Answers✔operating performance ratios
Which of the following statements fulfills a firm's requirement to disclose its earnings for a
period?
Select one:
a. Statement of Financial Position
b. Income Statement
c. Inventory Statement
d. Cash Flow Statement - Answers✔income statement
Which of the following ratios measure liquidity?
Select one:
a. debt to equity
b. current
c. quick
d. B & C
e. None of the above - Answers✔b and c
Comprehensive Income of the period is shown on the
