IVY software Financial Accounting Quizzes 2025
with 100% Correct Answers
From a bankers perspective, the most important ratio on the customers financial statement
is
Current Ratio
Which of the following is an operating performance ratio?
Debt to total assets
Times interest earned
Payout ratio
Times interest earned and payout ratio
None
Times interest earned and Payout Ratio
Horizontal analysis compares the components of a balance sheet with a base item. T/F
False
Since companies have different numbers of shares outstanding, it is not useful to compare
earnings per share ratios. T/F
True
There are two ratios that help define the operating cycle. They are:
receivables and inventory turnover
,receivables and accounts payable
inventory and accounts payable turnover
none of these
Receivables and accounts payable
The ratio that shows the markup in price over the cost of goods sold is
profit margins
gross margin ratio
return on assets
asset turnover
none
Gross margin ratio
The ratio that shows how investors value the stock is
payout ratio
earnings per share
return on equity
return on assets
none
, None
Financial strength ratios are utilized to help predict the long-run solvency of a company.
T/F
True
Ratio analysis is popular because ratios:
summarize important info
are useful in comparisons within a company over time
are useful in comparisons with other companies
all the above
All the above
ROE shows how much income was earned for every dollar invested by owners. T/F
True
A company's annual report is used primarily by the taxing authorities. T/F
True
Managerial accounting is involved in:
external reports
with 100% Correct Answers
From a bankers perspective, the most important ratio on the customers financial statement
is
Current Ratio
Which of the following is an operating performance ratio?
Debt to total assets
Times interest earned
Payout ratio
Times interest earned and payout ratio
None
Times interest earned and Payout Ratio
Horizontal analysis compares the components of a balance sheet with a base item. T/F
False
Since companies have different numbers of shares outstanding, it is not useful to compare
earnings per share ratios. T/F
True
There are two ratios that help define the operating cycle. They are:
receivables and inventory turnover
,receivables and accounts payable
inventory and accounts payable turnover
none of these
Receivables and accounts payable
The ratio that shows the markup in price over the cost of goods sold is
profit margins
gross margin ratio
return on assets
asset turnover
none
Gross margin ratio
The ratio that shows how investors value the stock is
payout ratio
earnings per share
return on equity
return on assets
none
, None
Financial strength ratios are utilized to help predict the long-run solvency of a company.
T/F
True
Ratio analysis is popular because ratios:
summarize important info
are useful in comparisons within a company over time
are useful in comparisons with other companies
all the above
All the above
ROE shows how much income was earned for every dollar invested by owners. T/F
True
A company's annual report is used primarily by the taxing authorities. T/F
True
Managerial accounting is involved in:
external reports
