ENT 4412 Final Exam Questions and
Answers Graded A+
Which of the classifications of financial ratios would be most interesting to a
financial manager concerned with the company's ability to meet its short-term
obligations? - Correct answer-Liquidity
Which of the following financial statements would disclose a company's short-term
and long-term debt obligations? - Correct answer-Balance sheet
If you are concerned about your company's ability to generate sales through its
efficient use of assets, you should calculate the _____ ratio. - Correct answer-Asset
turnover
Your company's current ratio is 0.72. Which of the following is not true about your
firm? - Correct answer-Your current assets exceed your current liabilities by 28%
Which of the following profitability indicators considers deductions for cost of
goods sold, selling, general, and administrative expenses but does not include
deductions for taxes and interest? - Correct answer-operating profit
Which of the firms below will have the highest ROE? - Correct answer-
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, The Dupont Framework breaks down a company's _________ into three
components for further analysis. - Correct answer-ROE
The Dupont Framework is composed of the following performance indicators
except: - Correct answer-solvency
Which of the following statements about Dupont Framework is false? - Correct
answer-If a firm's net income has increased relative to sales, then the profitability
component of Dupont will decrease
If you are concerned about how efficiently your company is generating sales with
the assets it has, which Dupont Framework indicator would you be most interested
in? - Correct answer-efficiency
Your company is strapped for cash and is having difficulties making payroll.
Which of the following actions would not alleviate your cash flow issues? -
Correct answer-delaying accounts receivable
ABC generated $10 million net cash from operating activities and used $11 million
net cash for investing activities last year. ABC also used $4 million for financing
activities. Which of the following is true about ABC's cash flow last year? -
Correct answer-ABC had a negative free cash flow
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
Which of the classifications of financial ratios would be most interesting to a
financial manager concerned with the company's ability to meet its short-term
obligations? - Correct answer-Liquidity
Which of the following financial statements would disclose a company's short-term
and long-term debt obligations? - Correct answer-Balance sheet
If you are concerned about your company's ability to generate sales through its
efficient use of assets, you should calculate the _____ ratio. - Correct answer-Asset
turnover
Your company's current ratio is 0.72. Which of the following is not true about your
firm? - Correct answer-Your current assets exceed your current liabilities by 28%
Which of the following profitability indicators considers deductions for cost of
goods sold, selling, general, and administrative expenses but does not include
deductions for taxes and interest? - Correct answer-operating profit
Which of the firms below will have the highest ROE? - Correct answer-
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, The Dupont Framework breaks down a company's _________ into three
components for further analysis. - Correct answer-ROE
The Dupont Framework is composed of the following performance indicators
except: - Correct answer-solvency
Which of the following statements about Dupont Framework is false? - Correct
answer-If a firm's net income has increased relative to sales, then the profitability
component of Dupont will decrease
If you are concerned about how efficiently your company is generating sales with
the assets it has, which Dupont Framework indicator would you be most interested
in? - Correct answer-efficiency
Your company is strapped for cash and is having difficulties making payroll.
Which of the following actions would not alleviate your cash flow issues? -
Correct answer-delaying accounts receivable
ABC generated $10 million net cash from operating activities and used $11 million
net cash for investing activities last year. ABC also used $4 million for financing
activities. Which of the following is true about ABC's cash flow last year? -
Correct answer-ABC had a negative free cash flow
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
