Corporate Finance - Ivy Software (MBA Prepworks)
(Latest ) Real Questions and Accurate
Answers (100% Verified)
• Which of the following is an operating performance ratio?
Debt to total assets
Times interest earned
Payout ratio
Times interest earned and payout ratio
None -✓✓Times interest earned and Payout Ratio
• Horizontal analysis compares the components of a balance sheet with a base item.
T/F -✓✓False
• Since companies have different numbers of shares outstanding, it is not useful to
compare earnings per share ratios. T/F -✓✓True
• There are two ratios that help define the operating cycle. They are:
receivables and inventory turnover
receivables and accounts payable
inventory and accounts payable turnover
none of these -✓✓Receivables and accounts payable
• The ratio that shows the markup in price over the cost of goods sold is
profit margins
gross margin ratio
return on assets
asset turnover
none -✓✓Gross margin ratio
• The ratio that shows how investors value the stock is
, payout ratio
earnings per share
return on equity
return on assets
none -✓✓None
• Financial strength ratios are utilized to help predict the long-run solvency of a
company. T/F -✓✓True
• Ratio analysis is popular because ratios:
summarize important info
are useful in comparisons within a company over time
are useful in comparisons with other companies
all the above -✓✓All the above
• ROE shows how much income was earned for every dollar invested by owners.
T/F -✓✓True
• A company's annual report is used primarily by the taxing authorities. T/F -
✓✓True
• Managerial accounting is involved in:
external reports
internal reports
tax reports
economic reports -✓✓Internal reports
• Using an accelerated depreciation method for tax purposes would be an example
of:
managerial accounting
financial accounting
tax accounting
(Latest ) Real Questions and Accurate
Answers (100% Verified)
• Which of the following is an operating performance ratio?
Debt to total assets
Times interest earned
Payout ratio
Times interest earned and payout ratio
None -✓✓Times interest earned and Payout Ratio
• Horizontal analysis compares the components of a balance sheet with a base item.
T/F -✓✓False
• Since companies have different numbers of shares outstanding, it is not useful to
compare earnings per share ratios. T/F -✓✓True
• There are two ratios that help define the operating cycle. They are:
receivables and inventory turnover
receivables and accounts payable
inventory and accounts payable turnover
none of these -✓✓Receivables and accounts payable
• The ratio that shows the markup in price over the cost of goods sold is
profit margins
gross margin ratio
return on assets
asset turnover
none -✓✓Gross margin ratio
• The ratio that shows how investors value the stock is
, payout ratio
earnings per share
return on equity
return on assets
none -✓✓None
• Financial strength ratios are utilized to help predict the long-run solvency of a
company. T/F -✓✓True
• Ratio analysis is popular because ratios:
summarize important info
are useful in comparisons within a company over time
are useful in comparisons with other companies
all the above -✓✓All the above
• ROE shows how much income was earned for every dollar invested by owners.
T/F -✓✓True
• A company's annual report is used primarily by the taxing authorities. T/F -
✓✓True
• Managerial accounting is involved in:
external reports
internal reports
tax reports
economic reports -✓✓Internal reports
• Using an accelerated depreciation method for tax purposes would be an example
of:
managerial accounting
financial accounting
tax accounting
