KIN 3804 Final – Zvosec Exam Questions
With Correct Answers
financial statement - CORRECT ANSWER✔✔-The primary source of information
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used to evaluate the financial health and performance of an organization
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Three basic types of financial statements - CORRECT ANSWER✔✔-Balance sheet
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Income statement
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Statement of cash flows | | |
Balance sheet - CORRECT ANSWER✔✔-A picture or snapshot of the financial
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condition of an organization at a specific point in time
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Income Statement - CORRECT ANSWER✔✔-Shows an organization's income (or
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loss) over a specified period of time, often on an annual or quarterly basis
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Statement of Cash flows - CORRECT ANSWER✔✔-Financial statement that tracks
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cash flowing into and out of an organization over a period of time
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Reasons why financial managers engage in ratio analysis - CORRECT ANSWER✔✔-
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To evaluate how well a company is operating in the current time period
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To compare current to past performance
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To compare current and historical performance to industry standards
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, To study efficiency of operations
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Current ratio - CORRECT ANSWER✔✔-The organization's ability to meet its
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current liabilities with its current assets
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Quick ratio (a.k.a. acid test ratio): - CORRECT ANSWER✔✔-The organization's
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ability to meet its current liabilities with current assets other than inventory
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Inventory turnover ratio - CORRECT ANSWER✔✔-How often the organization sells
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|and replaces its inventory over a specified period of time
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Debt ratio - CORRECT ANSWER✔✔-How the organization finances its operation
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with debt and equity
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Interest coverage ratio - CORRECT ANSWER✔✔-The organization's ability to pay
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the interest on its debt owed
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Total asset turnover ratio - CORRECT ANSWER✔✔-How efficiently the
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organization is using its assets to make money | | | | | | |
Net profit margin - CORRECT ANSWER✔✔-The percentage of the organization's
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total sales or revenues that was net profit or income; this helps to measure how
| | | | | | | | | | | | | | |
profitable a business is | | |
Return on equity - CORRECT ANSWER✔✔-The return rate that the organization's
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owners or shareholders are receiving on their investment
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With Correct Answers
financial statement - CORRECT ANSWER✔✔-The primary source of information
| | | | | | | | |
used to evaluate the financial health and performance of an organization
| | | | | | | | | |
Three basic types of financial statements - CORRECT ANSWER✔✔-Balance sheet
| | | | | | | | |
Income statement
|
Statement of cash flows | | |
Balance sheet - CORRECT ANSWER✔✔-A picture or snapshot of the financial
| | | | | | | | | | |
condition of an organization at a specific point in time
| | | | | | | | |
Income Statement - CORRECT ANSWER✔✔-Shows an organization's income (or
| | | | | | | | |
loss) over a specified period of time, often on an annual or quarterly basis
| | | | | | | | | | | | |
Statement of Cash flows - CORRECT ANSWER✔✔-Financial statement that tracks
| | | | | | | | | |
cash flowing into and out of an organization over a period of time
| | | | | | | | | | | |
Reasons why financial managers engage in ratio analysis - CORRECT ANSWER✔✔-
| | | | | | | | | |
To evaluate how well a company is operating in the current time period
| | | | | | | | | | | |
To compare current to past performance
| | | | |
To compare current and historical performance to industry standards
| | | | | | | |
, To study efficiency of operations
| | | |
Current ratio - CORRECT ANSWER✔✔-The organization's ability to meet its
| | | | | | | | | |
current liabilities with its current assets
| | | | |
Quick ratio (a.k.a. acid test ratio): - CORRECT ANSWER✔✔-The organization's
| | | | | | | | | |
ability to meet its current liabilities with current assets other than inventory
| | | | | | | | | | |
Inventory turnover ratio - CORRECT ANSWER✔✔-How often the organization sells
| | | | | | | | |
|and replaces its inventory over a specified period of time
| | | | | | | | |
Debt ratio - CORRECT ANSWER✔✔-How the organization finances its operation
| | | | | | | | | |
with debt and equity
| | |
Interest coverage ratio - CORRECT ANSWER✔✔-The organization's ability to pay
| | | | | | | | | |
the interest on its debt owed
| | | | |
Total asset turnover ratio - CORRECT ANSWER✔✔-How efficiently the
| | | | | | | | |
organization is using its assets to make money | | | | | | |
Net profit margin - CORRECT ANSWER✔✔-The percentage of the organization's
| | | | | | | | | |
total sales or revenues that was net profit or income; this helps to measure how
| | | | | | | | | | | | | | |
profitable a business is | | |
Return on equity - CORRECT ANSWER✔✔-The return rate that the organization's
| | | | | | | | | | |
owners or shareholders are receiving on their investment
| | | | | | |
