ENT4412 Final Exam Study Guide
Questions and Answers 100%
Pass
Your company has purchased a brand new production facility. Which of the
following financial statements would disclose the source of the financing for your
company's new facility?
1) P & L statement
2) Balance sheet
3) Cash flow statement
4) Income statement - CORRECT ANSWER-Balance sheet
You have been asked to calculate your firm's return on assets. Which of the
following financial statement(s) do you need?
1)Income statement and balance sheet
,2) Income statement
3) None of the above
4) Balance sheet - CORRECT ANSWER-Income statement and balance sheet
If you are calculating your firm's quick ratio, which of the following are not
considered to be a "quick asset"?
1) Inventory
2) Accounts Receivable
3) Stocks and Bonds
4) Cash - CORRECT ANSWER-Inventory
Common size financial statements and ratio analysis can show:
1) Performance compared to industry standards
2) Positive or negative trends within the company over time
3) How a company is performing with respect to a specific competitor
4) Performance over time, relative to competitors, and with respect to the industry
- CORRECT ANSWER-Performance over time, relative to competitors, and with
respect to the industry
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,If you are concerned about your company's ability to generate sales through its
efficient use of assets, you should calculate the _____ ratio.
1) Asset Turnover
2) Return on Investment
3) Return on Assets
4) Receivables Turnover - CORRECT ANSWER-Asset Turnover
The leverage component of the Dupont Framework can be calculated by dividing a
firm's _____ by its ______.
1) Debt; Equity
2) Net Income; Sales
3) Assets; Equity
4) Assets; Liability - CORRECT ANSWER-Assets; Equity
If you are concerned about how efficiently your company is generating sales with
the assets it has, which Dupont Framework indicator would you be most interested
in?
1) Solvency
, 2) Efficiency
3) Profitability
4) Leverage - CORRECT ANSWER-Efficiency
Which of the following statements about Dupont Framework is false?
1) If a firm's sales are greater than its assets, its efficiency indicator will be > 1
2) If a firm's net income has increased relative to sales, then the profitability
component of Dupont will decrease
3) If a firm's assets are increasing and its sales are decreasing over time, then its
efficiency component of Dupont is also decreasing
4) If a firm's equity is greater than its assets, its leverage indicator will be < 1 -
CORRECT ANSWER-If a firm's net income has increased relative to sales, then
the profitability component of Dupont will decrease
The Dupont Framework breaks down a company's _________ into three
components for further analysis.
1) ROE
2) ROI
3) Working Capital
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
Questions and Answers 100%
Pass
Your company has purchased a brand new production facility. Which of the
following financial statements would disclose the source of the financing for your
company's new facility?
1) P & L statement
2) Balance sheet
3) Cash flow statement
4) Income statement - CORRECT ANSWER-Balance sheet
You have been asked to calculate your firm's return on assets. Which of the
following financial statement(s) do you need?
1)Income statement and balance sheet
,2) Income statement
3) None of the above
4) Balance sheet - CORRECT ANSWER-Income statement and balance sheet
If you are calculating your firm's quick ratio, which of the following are not
considered to be a "quick asset"?
1) Inventory
2) Accounts Receivable
3) Stocks and Bonds
4) Cash - CORRECT ANSWER-Inventory
Common size financial statements and ratio analysis can show:
1) Performance compared to industry standards
2) Positive or negative trends within the company over time
3) How a company is performing with respect to a specific competitor
4) Performance over time, relative to competitors, and with respect to the industry
- CORRECT ANSWER-Performance over time, relative to competitors, and with
respect to the industry
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
,If you are concerned about your company's ability to generate sales through its
efficient use of assets, you should calculate the _____ ratio.
1) Asset Turnover
2) Return on Investment
3) Return on Assets
4) Receivables Turnover - CORRECT ANSWER-Asset Turnover
The leverage component of the Dupont Framework can be calculated by dividing a
firm's _____ by its ______.
1) Debt; Equity
2) Net Income; Sales
3) Assets; Equity
4) Assets; Liability - CORRECT ANSWER-Assets; Equity
If you are concerned about how efficiently your company is generating sales with
the assets it has, which Dupont Framework indicator would you be most interested
in?
1) Solvency
, 2) Efficiency
3) Profitability
4) Leverage - CORRECT ANSWER-Efficiency
Which of the following statements about Dupont Framework is false?
1) If a firm's sales are greater than its assets, its efficiency indicator will be > 1
2) If a firm's net income has increased relative to sales, then the profitability
component of Dupont will decrease
3) If a firm's assets are increasing and its sales are decreasing over time, then its
efficiency component of Dupont is also decreasing
4) If a firm's equity is greater than its assets, its leverage indicator will be < 1 -
CORRECT ANSWER-If a firm's net income has increased relative to sales, then
the profitability component of Dupont will decrease
The Dupont Framework breaks down a company's _________ into three
components for further analysis.
1) ROE
2) ROI
3) Working Capital
COPYRIGHT ALL RIGHTS RESERVED ©️ 2025
