McGraw Hill Financial Statement
Analysis Chapter 3+4 MC Exam with
Verified Detailed Answers
The DuPont model disaggregates ROCE into its component parts of
asset turnover, leverage, and which of the following?
a. Net Income
b. Profit margin
c. Gross Margin
d. Sales -
correct answer ✅b. Profit Margin
Whereas time series analysis is a comparison of a single firm's
financial performance over a span of time, a cross-sectional analysis
compares which of the following?
a. multiple companies at multiple points in time
b. a single company at a single point in time
c. multiple companies at a single point of time
d. a single company at multiple points in time -
correct answer ✅c. multiple companies at a single point of time
The cash conversion cycle equals which of the following?
a. DSO + DSI + DPO
b. DSO + DSI - DPO
, McGraw Hill Financial Statement
Analysis Chapter 3+4 MC Exam with
Verified Detailed Answers
c. DSO + DPI - DPO
d. DSO - DPI - DPO -
correct answer ✅b. DSO + DSI - DPO
According to Porter's 5 forces, the fact that vendors require quick
payment or cash payment from their customers may indicate the
power of which of the following, and may have what impact on
accounts receivable turnover?
a. vendor power and faster accounts receivable turnover
b. customer power and faster accounts receivable turnover
c. vendor power and slower accounts receivable turnover
d. customer power and slower accounts receivable turnover -
correct answer ✅a. vendor power and faster accounts receivable
turnover
While cross-sectional analysis is an assessment relative to other
companies, which of the following types of analysis is an
assessment relative to a company's own past?
a. diagnostic
b. descriptive
Analysis Chapter 3+4 MC Exam with
Verified Detailed Answers
The DuPont model disaggregates ROCE into its component parts of
asset turnover, leverage, and which of the following?
a. Net Income
b. Profit margin
c. Gross Margin
d. Sales -
correct answer ✅b. Profit Margin
Whereas time series analysis is a comparison of a single firm's
financial performance over a span of time, a cross-sectional analysis
compares which of the following?
a. multiple companies at multiple points in time
b. a single company at a single point in time
c. multiple companies at a single point of time
d. a single company at multiple points in time -
correct answer ✅c. multiple companies at a single point of time
The cash conversion cycle equals which of the following?
a. DSO + DSI + DPO
b. DSO + DSI - DPO
, McGraw Hill Financial Statement
Analysis Chapter 3+4 MC Exam with
Verified Detailed Answers
c. DSO + DPI - DPO
d. DSO - DPI - DPO -
correct answer ✅b. DSO + DSI - DPO
According to Porter's 5 forces, the fact that vendors require quick
payment or cash payment from their customers may indicate the
power of which of the following, and may have what impact on
accounts receivable turnover?
a. vendor power and faster accounts receivable turnover
b. customer power and faster accounts receivable turnover
c. vendor power and slower accounts receivable turnover
d. customer power and slower accounts receivable turnover -
correct answer ✅a. vendor power and faster accounts receivable
turnover
While cross-sectional analysis is an assessment relative to other
companies, which of the following types of analysis is an
assessment relative to a company's own past?
a. diagnostic
b. descriptive
