Principles of Financial Management BCOR 2204 Quiz 1 Questions With Correct Answers.

Principles
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Financial
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Management
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BCOR
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2204 Quiz 1 Questions With Correct Answers
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Net /Profit /Margin /- /correct /answer(s) /✔✔ /Net /Income/Sales



who /uses /financial /ratios /- /correct /answer(s) /✔✔ /investors

management /

shareholders/ /analysts /

creditor/ /lenders



Why /evaluate /financial /statements? /- /correct /answer(s) /✔✔ /Internal /uses:

Performance /evaluation /- /compensation /and /comparison /between /divisions

Planning /for /the /future /- /guide /in /estimating /future /cash /flows



External /uses:

Creditors

Stockholders

Analysts

, Five /Categories /of /Ratios /- /correct /answer(s) /✔✔ /1. /Liquidity /Ratios /(short /term /solvency) /

2. /Financial /Leverage /Ratios /(long /term /solvency, /Debts)

3. /Asset /Management /Ratios /(turnover) /EFF

4. /Profitability /Ratios

5. /Market /Value /Ratios /(P/E)



For /each /ratio /ask /yourself /- /correct /answer(s) /✔✔ /what /is /the /ratio /trying /to /measure? /

why /is /that /information /important?



Benchmarking /- /correct /answer(s) /✔✔ /ratios /need /to /be /compared /to /something /



time /trend /analysis: /

- /how /he /firms /performance /is /changing /through /time /



Peer /Group /Analysis:

- /compare /to /similar /companies /or /within /industry



Current /Ratio /- /correct /answer(s) /✔✔ /Current /Assets/ /Current /Liabilities /(liquidity) /



Are /there /sufficient /current /assets /to /pay /off /liabilities? /what /is /the /cushion /of /safety?



Quick /Ratio /- /correct /answer(s) /✔✔ /(Current /Assets /- /Inventory) // /Current /Liabilities



what
/happens


/to


/the