财务管理 chapter3 习题复习进程.docx

财务管理 chapter3 习题复习进程.docx

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财务管理chapter3习题复习进程

Chapter03FinancialStatementsAnalysisandLong-TermPlanningAnswerKey

 MultipleChoiceQuestions

1. Onekeyreasonalong-termfinancialplanisdevelopedisbecause:

A. theplandeterminesyourfinancialpolicy.

B. theplandeterminesyourinvestmentpolicy.

C. therearedirectconnectionsbetweenachievablecorporategrowthandthefinancialpolicy.

D. thereisunlimitedgrowthpossibleinawell-developedfinancialplan.

E. Noneoftheabove.

Difficultylevel:

Easy

Topic:

LONG-TERMPLANNING

Type:

DEFINITIONS

 c

2. Projectedfuturefinancialstatementsarecalled:

A. plugstatements.

B. proformastatements.

C. reconciledstatements.

D. aggregatedstatements.

E. noneoftheabove.

 Difficultylevel:

Easy

Topic:

PROFORMASTATEMENTS

Type:

DEFINITIONS

 B

3. Thepercentageofsalesmethod:

A. requiresthatallaccountsgrowatthesamerate.

B. separatesaccountsthatvarywithsalesandthosethatdonotvarywithsales.

C. allowstheanalysttocalculatehowmuchfinancingthefirmwillneedtosupportthepredictedsaleslevel.

D. BothAandB.

E. BothBandC.

Difficultylevel:

Medium

Topic:

PERCENTAGEOFSALES

Type:

DEFINITIONS

 E

4. A_____standardizesitemsontheincomestatementandbalancesheetasapercentageoftotalsalesandtotalassets,respectively. 

A. taxreconciliationstatement

B. statementofstandardization

C. statementofcashflows

D. common-baseyearstatement

E. common-sizestatement

 Difficultylevel:

Easy

Topic:

COMMON-SIZESTATEMENTS

Type:

DEFINITIONS

 E

5. Relationshipsdeterminedfromafirm'sfinancialinformationandusedforcomparisonpurposesareknownas:

A. financialratios.

B. comparisonstatements.

C. dimensionalanalysis.

D. scenarioanalysis.

E. solvencyanalysis.

 A

Difficultylevel:

Easy

Topic:

FINANCIALRATIOS

Type:

DEFINITIONS

6. Financialratiosthatmeasureafirm'sabilitytopayitsbillsovertheshortrunwithoutunduestressareknownas_____ratios. 

A. assetmanagement

B. long-termsolvency

C. short-termsolvency

D. profitability

E. marketvalue

 Difficultylevel:

Easy

Topic:

SHORT-TERMSOLVENCYRATIOS

Type:

DEFINITIONS

 C

7. Thecurrentratioismeasuredas:

A. currentassetsminuscurrentliabilities.

B. currentassetsdividedbycurrentliabilities.

C. currentliabilitiesminusinventory,dividedbycurrentassets.

D. cashonhanddividedbycurrentliabilities.

E. currentliabilitiesdividedbycurrentassets.

Difficultylevel:

Easy

Topic:

CURRENTRATIO

Type:

DEFINITIONS

 B

8. Thequickratioismeasuredas:

A. currentassetsdividedbycurrentliabilities.

B. cashonhandpluscurrentliabilities,dividedbycurrentassets.

C. currentliabilitiesdividedbycurrentassets,plusinventory.

D. currentassetsminusinventory,dividedbycurrentliabilities.

E. currentassetsminusinventoryminuscurrentliabilities.

 Difficultylevel:

Easy

Topic:

QUICKRATIO

Type:

DEFINITIONS

 D

9. Thecashratioismeasuredas:

A. currentassetsdividedbycurrentliabilities.

B. currentassetsminuscashonhand,dividedbycurrentliabilities.

C. currentliabilitiespluscurrentassets,dividedbycashonhand.

D. cashonhandplusinventory,dividedbycurrentliabilities.

E. cashonhanddividedbycurrentliabilities.

 Difficultylevel:

Medium

Topic:

CASHRATIO

Type:

DEFINITIONS

 E

10. Ratiosthatmeasureafirm'sfinancialleverageareknownas_____ratios. 

A. assetmanagement

B. long-termsolvency

C. short-termsolvency

D. profitability

E. marketvalue

Difficultylevel:

Easy

Topic:

LONG-TERMSOLVENCYRATIOS

Type:

DEFINITIONS

 B

11. Thefinancialratiomeasuredastotalassetsminustotalequity,dividedbytotalassets,isthe:

A. totaldebtratio.

B. equitymultiplier.

C. debt-equityratio.

D. currentratio.

E. timesinterestearnedratio.

 Difficultylevel:

Easy

Topic:

TOTALDEBTRATIO

Type:

DEFINITIONS

A

12. Thedebt-equityratioismeasuredastotal:

A. equityminustotaldebt.

B. equitydividedbytotaldebt.

C. debtdividedbytotalequity.

D. debtplustotalequity.

E. debtminustotalassets,dividedbytotalequity.

 Difficultylevel:

Easy

Topic:

DEBT-EQUITYRATIO

Type:

DEFINITIONS

 C

13. Theequitymultiplierratioismeasuredastotal:

A. equitydividedbytotalassets.

B. equityplustotaldebt.

C. assetsminustotalequity,dividedbytotalassets.

D. assetsplustotalequity,dividedbytotaldebt.

E. assetsdividedbytotalequity.

 Difficultylevel:

Medium

Topic:

EQUITYMULTIPLIER

Type:

DEFINITIONS

 14. Thefinancialratiomeasuredasearningsbeforeinterestandtaxes,dividedbyinterestexpenseisthe:

A. cashcoverageratio.

B. debt-equityratio.

C. timesinterestearnedratio.

D. grossmargin.

E. totaldebtratio.

Difficultylevel:

Medium

Topic:

TIMESINTERESTEARNEDRATIO

Type:

DEFINITIONS

15. Thefinancialratiomeasuredasearningsbeforeinterestandtaxes,plusdepreciation,dividedbyinterestexpense,isthe:

A. cashcoverageratio.

B. debt-equityratio.

C. timesinterestearnedratio.

D. grossmargin.

E. totaldebtratio.

 Difficultylevel:

Medium

Topic:

CASHCOVERAGERATIO

Type:

DEFINITIONS

 16. Ratiosthatmeasurehowefficientlyafirmusesitsassetstogeneratesalesareknownas_____ratios. 

A. assetmanagement

B. long-termsolvency

C. short-termsolvency

D. profitability

E. marketvalue

Difficultylevel:

Easy

Topic:

ASSETMANAGEMENTRATIOS

Type:

DEFINITIONS

 17. Theinventoryturnoverratioismeasuredas:

A. totalsalesminusinventory.

B. inventorytimestotalsales.

C. costofgoodssolddividedbyinventory.

D. inventorytimescostofgoodssold.

E. inventorypluscostofgoodssold.

Difficultylevel:

Medium

Topic:

INVENTORYTURNOVER

Type:

DEFINITIONS

18. Thefinancialratiodays'salesininventoryismeasuredas:

A. inventoryturnoverplus365days.

B. inventorytimes365days.

C. inventorypluscostofgoodssold,dividedby365days.

D. 365daysdividedbytheinventory.

E. 365daysdividedbytheinventoryturnover.

 Difficultylevel:

Medium

Topic:

DAYS'SALESININVENTORY

Type:

DEFINITIONS

 19. Thereceivablesturnoverratioismeasuredas:

A. salesplusaccountsreceivable.

B. salesdividedbyaccountsreceivable.

C. salesminusaccountsreceivable,dividedbysales.

D. accountsreceivabletimessales.

E. accountsreceivabledividedbysales.

Difficultylevel:

Medium

Topic:

RECEIVABLESTURNOVER

Type:

DEFINITIONS

 20. Thefinancialratiodays'salesinreceivablesismeasuredas:

A. receivablesturnoverplus365days.

B. accountsreceivabletimes365days.

C. accountsreceivableplussales,dividedby365days.

D. 365daysdividedbythereceivablesturnover.

E. 365daysdividedbytheaccountsreceivable.

Difficultylevel:

Medium

Topic:

DAYS'SALESINRECEIVABLES

Type:

DEFINITIONS

21. Thetotalassetturnoverratioismeasuredas:

A. salesminustotalassets.

B. salesdividedbytotalassets.

C. salestimestotalassets.

D. totalassetsdividedbysales.

E. totalassetsplussales.

 Difficultylevel:

Easy

Topic:

TOTALASSETTURNOVER

Type:

DEFINITIONS

 22. Ratiosthatmeasurehowefficientlyafirm'smanagementusesitsassetsandequitytogeneratebottomlinenetincomeareknownas_____ratios. 

A. assetmanagement

B. long-termsolvency

C. short-termsolvency

D. profitability

E. marketvalue

Difficultylevel:

Easy

Topic:

PROFITABILITYRATIOS

Type:

DEFINITIONS

 23. Thefinancialratiomeasuredasnetincomedividedbysalesisknownasthefirm's:

A. profitmargin.

B. returnonassets.

C. returnonequity.

D. assetturnover.

E. earningsbeforeinterestandtaxes.

Difficultylevel:

Easy

Topic:

PROFITMARGIN

Type:

DEFINITIONS

24. Thefinancialratiomeasuredasnetincomedividedbytotalassetsisknownasthefirm's:

A. profitmargin.

B. returnonassets.

C. returnonequity.

D. assetturnover.

E. earningsbeforeinterestandtaxes.

 Difficultylevel:

Easy

Topic:

RETURNONASSETS

Type:

DEFINITIONS

 25. Thefinancialratiomeasuredasnetincomedividedbytotalequityisknownasthefirm's:

A. profitmargin.

B. returnonassets.

C. returnonequity.

D. assetturnover.

E. earningsbeforeinterestandtaxes.

Difficultylevel:

Easy

Topic:

RETURNONEQUITY

Type:

DEFINITIONS

 26. Thefinancialratiomeasuredasthepricepershareofstockdividedbyearningspershareisknownasthe:

A. returnonassets.

B. returnonequity.

C. debt-equityratio.

D. price-earningsratio.

E. DuPontidentity.

 Difficultylevel:

Easy

Topic:

PRICE-EARNINGSRATIO

Type:

DEFINITIONS

27. Themarket-to-bookratioismeasuredas:

A. totalequitydividedbytotalassets.

B. netincometimesmarketpricepershareofstock.

C. netincomedividedbymarketpricepershareofstock.

D. marketpricepershareofstockdividedbyearningspershare.

E. marketvalueofequitypersharedividedbybookvalueofequitypershare.

 Difficultylevel:

Medium

Topic:

MARKET-TO-BOOKRATIO

Type:

DEFINITIONS

 28. The_____breaksdownreturnonequityintothreecomponentparts. 

A. DuPontidentity

B. returnonassets

C. statementofcashflows

D. assetturnoverratio

E. equitymultiplier

Difficultylevel:

Medium

Topic:

DUPONTIDENTITY

Type:

DEFINITIONS

 29. TheExternalFundsNeeded（EFN）equationdoesnotmeasurethe:

A. additionalassetrequirementsgivenachangeinsales.

B. additionaltotalliabilitiesraisedgiventhechangeinsales.

C. rateofreturntoshareholdersgiventhechangeinsales.

D. netincomeexpectedtobeearnedgiventhechangeinsales.

E. Noneoftheabove.

Difficultylevel:

Medium

Topic:

EXTERNALFUNDSNEEDED

Type:

DEFINITIONS

30. Tocalculatesustainablegrowthratewithoutusingreturnonequity,theanalystneedsthe:

A. profitmargin.

B. pa