FINANCE 301 Study Guide-Exam Questions all
with 100% Correct Answers
Dow Jones (DJIA) - ANSWER 13,500
NASDAQ - ANSWER 3,000
Price of Gold - ANSWER $1,700 per oz
Price of Oil - ANSWER $100 per barrel
30-Year Treasury Yield - ANSWER 3.0%
S&P 500 VIX - ANSWER 13
What are the tools of finance? - ANSWER Financial Statements and Ratio Analysis
Present value and future value concepts
Models of risk and return
Spreadsheet modeling methods
What is the Cash Flow Equation - ANSWER Net Income
+Depreciation
-Receivables
, -Inventory
-Fixed Assets
_______________
Cash Flow
Four Financial Statements used for accounting - ANSWER Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
Current Ratio - ANSWER Measures company's ability to pay CL with CA
(Should usually be greater than 2)
Quick Ratio - ANSWER Modified version of Current Ratio, Inventory is removed for a
more refined measure because inventory is the least liquid asset
Asset Turnover Ratio - ANSWER Measures how many dollars of sales a firm is able to
generate for each dollar of assets. A greater asset turnover implies a more productive
use of assets
Inventory Turnover Ratio - ANSWER Measures how well a firm manages its inventories
Days sales in inventory (DSI) Ratio - ANSWER Determines how many days of operating
activity are supported by the level of inventory
Receivables Turnover Ratio - ANSWER Reflects the # of times a firm collects its A/R per
year (measure of working capital efficiency)
with 100% Correct Answers
Dow Jones (DJIA) - ANSWER 13,500
NASDAQ - ANSWER 3,000
Price of Gold - ANSWER $1,700 per oz
Price of Oil - ANSWER $100 per barrel
30-Year Treasury Yield - ANSWER 3.0%
S&P 500 VIX - ANSWER 13
What are the tools of finance? - ANSWER Financial Statements and Ratio Analysis
Present value and future value concepts
Models of risk and return
Spreadsheet modeling methods
What is the Cash Flow Equation - ANSWER Net Income
+Depreciation
-Receivables
, -Inventory
-Fixed Assets
_______________
Cash Flow
Four Financial Statements used for accounting - ANSWER Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
Current Ratio - ANSWER Measures company's ability to pay CL with CA
(Should usually be greater than 2)
Quick Ratio - ANSWER Modified version of Current Ratio, Inventory is removed for a
more refined measure because inventory is the least liquid asset
Asset Turnover Ratio - ANSWER Measures how many dollars of sales a firm is able to
generate for each dollar of assets. A greater asset turnover implies a more productive
use of assets
Inventory Turnover Ratio - ANSWER Measures how well a firm manages its inventories
Days sales in inventory (DSI) Ratio - ANSWER Determines how many days of operating
activity are supported by the level of inventory
Receivables Turnover Ratio - ANSWER Reflects the # of times a firm collects its A/R per
year (measure of working capital efficiency)
