D078 RATIOS EXAM | Questions and Answers |
100% Correct (Latest Update )
1. Debt Ratio: Proportion of assets financed through debt.
2. Debt-to-Equity Ratio: Debt amount per dollar of equity held.
3. Times Interest Earned (TIE): Operating profit coverage of interest
expenses.
4. Return on Assets (ROA): Net income as a percentage of total assets.
5. Return on Equity (ROE): Net income as a percentage of owners' equity.
6. Gross Margin: Percentage of revenue after deducting COGS.
7. Operating Margin: Percentage of sales remaining after COGS and
expenses.
8. Credit Sales: Sales made on credit, creating accounts receivable.
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, 9. COGS (Cost of Goods Sold): Direct costs attributable to the production of
goods.
10. Liquidity Ratios: Assess a company's ability to meet short-term
obligations.
11. Profitability Ratios: Evaluate a company's ability to generate profit.
12. Leverage Ratios: Measure the degree of a company's debt financing.
13. Efficiency Ratios: Assess how well a company utilizes its assets.
14. Financial Leverage: Use of debt to increase potential return on equity.
15. Credit Standards: Criteria set by a firm for extending credit.
16. Sales: Total revenue generated from goods or services.
17. Operating Income: Earnings before interest and taxes (EBIT).
18. Net Income: Total profit after all expenses have been deducted.
19. Equity Financing: Raising capital through selling shares of stock.
20. Debt Financing: Raising capital through borrowing.
21. Net Margin: Percentage of revenue retained as profit.
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100% Correct (Latest Update )
1. Debt Ratio: Proportion of assets financed through debt.
2. Debt-to-Equity Ratio: Debt amount per dollar of equity held.
3. Times Interest Earned (TIE): Operating profit coverage of interest
expenses.
4. Return on Assets (ROA): Net income as a percentage of total assets.
5. Return on Equity (ROE): Net income as a percentage of owners' equity.
6. Gross Margin: Percentage of revenue after deducting COGS.
7. Operating Margin: Percentage of sales remaining after COGS and
expenses.
8. Credit Sales: Sales made on credit, creating accounts receivable.
1/8
, 9. COGS (Cost of Goods Sold): Direct costs attributable to the production of
goods.
10. Liquidity Ratios: Assess a company's ability to meet short-term
obligations.
11. Profitability Ratios: Evaluate a company's ability to generate profit.
12. Leverage Ratios: Measure the degree of a company's debt financing.
13. Efficiency Ratios: Assess how well a company utilizes its assets.
14. Financial Leverage: Use of debt to increase potential return on equity.
15. Credit Standards: Criteria set by a firm for extending credit.
16. Sales: Total revenue generated from goods or services.
17. Operating Income: Earnings before interest and taxes (EBIT).
18. Net Income: Total profit after all expenses have been deducted.
19. Equity Financing: Raising capital through selling shares of stock.
20. Debt Financing: Raising capital through borrowing.
21. Net Margin: Percentage of revenue retained as profit.
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