Simple Test
Settings
-
+
This quiz includes several simple questions about financial statement analysis. It should take you 5 minutes to complete this quiz.
- 1.Common size financial statements help an analyst to:
- A.
Evaluate financial statements of companies within a given industry of the approximate same size.
- B.
Determine which companies in a similar industry are at approximately the same stage of development.
- C.
Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.
- D.
Ascertain the relative potential of companies of similar size in different industries.
- 2.Which of the following ratios would be least useful in determining a company's ability to pay its expenses and liabilities?
- A.
Current ratio
- B.
Acid-test ratio
- C.
Price-earnings ratio
- D.
Times interest earned ratio
- 3.Most stockholders would ordinarily be least concerned with which of the following ratios:
- A.
Earnings per share
- B.
Dividend yield ratio
- C.
Price-earnings ratio
- D.
Acid-test ratio
- 4.What effect will the issuance of common stock for cash at year-end have on the following ratios?
- A.
Increases Return on Total Assets and increases Debt-to-Equity Ratio
- B.
Increases Return on Total Assets and decreases Debt-to-Equity Ratio
- C.
Decreases Return on Total Assets and increases Debt-to-Equity Ratio
- D.
Decreases Return on Total Assets and decreases Debt-to-Equity Ratio
- 5.If a company is profitable and is effectively using leverage, which one of the following ratios is likely to be the largest?
- A.
Return on total assets
- B.
Return on total liabilities
- C.
Return on common stockholders' equity
- D.
Cannot be determined
Back to top