An increase in financial leverage generally results in a higher return on equity (ROE).
Top of Form
[removed]
True
[removed]
False
Bottom of Form
A company’s return on assets should be greater than its return on equity.
Top of Form
[removed]
True
[removed]
False
Bottom of Form
An optimal current ratio should be greater than 1.0.
Top of Form
[removed]
True
[removed]
False
Bottom of Form
GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net income (assuming no unusual items)?
Top of Form
[removed]
$50
[removed]
$500
[removed]
$5
[removed]
The answer cannot be determined with the information provided
Bottom of Form
Common-size financial statements are constructed in order to:
Top of Form
[removed]
Adjust for inflation and risk
[removed]
Facilitate comparisons of different-sized companies
[removed]
To comply with SEC requirements
[removed]
All of the above
Bottom of Form
A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all else being equal?
Top of Form
[removed]
Current ratio
[removed]
Debt to equity ratio
[removed]
Debt to asset ratio
[removed]
Net fixed assets to total assets
Bottom of Form
A company has net working capital of $0, current liabilities of $25 and total assets equal to $100. What is its current ratio?
Top of Form
[removed]
0.0
[removed]
1.0
[removed]
0.5
[removed]
4.0
Bottom of Form
Analysis of a company’s financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer question 9.
Sales in 2003 were $10,000. Therefore, the compounded average growth rate is:
Top of Form
[removed]
8.6%
[removed]
6.7%
[removed]
6.3%
[removed]
Not enough information available
Bottom of Form
The cash cycle measures the days required to produce finished goods or delivered services.
Top of Form
[removed]
True
[removed]
False
Bottom of Form
In general, an increase in a liability is a source of funds.
Top of Form
True
False[removed]
Bottom of Form
Recent Commemts