公司理財英文版題庫3

1、CHAPTER 3Financial Statement Analysis, Planning, and GrowthMultiple Choice Questions:I. DEFINITIONSLONG-TERM PLANNINGc 1. a. b. c.One key reason a long-term financial plan is developed is because: the plan determines your financial policy. the plan determines your investment policy.there are direct

2、connections between achievable corporate growth and the financial policy.d. e.there is unlimited growth possible in a well-developed financial plan. None of the above.PRO FORMA STATEMENTSb 2. a. b. c. d. e.Projected future financial statements are called: plug forma statements. reconc

3、iled statements. aggregated statements. none of the above.PERCENTAGE OF SALESe 3. a. b. c.The percentage of sales method: requires that all accounts grow at the same rate. separates accounts that vary with sales and those that do not vary with sales. allows the analyst to calculate how much financin

4、g the firm will need to support the predicted sales level.d. e.Both A and B.Both B and C.COMMON-SIZE STATEMENTSe 4.A standardizes items on the income statement and balance sheet as a percentageof total sales and total assets, respectively.a. b.c. d.e.tax reconciliation statement statement of standar

5、dization statement of cash flows common-base year statement common-size statementFINANCIAL RATIOSa 5.Relationships determined from a firm' s financial information and used for comparisonpurposes are known as:a. b.c.d.e.financial ratios. comparison statements. dimensional analysis. scenario analy

6、sis. solvency analysis.SHORT-TERM SOLVENCY RATIOSc 6. Financial ratios that measure a firm' s ability to pay its bills over the short run withoutundue stress are known as ratios.a. asset managementb. long-term solvencyc. short-term solvencyd. profitabilitye. market valueCURRENT RATIOb 7. The cur

7、rent ratio is measured as:a. current assets minus current liabilities.b. current assets divided by current liabilities.c. current liabilities minus inventory, divided by current assets.d. cash on hand divided by current liabilities.e. current liabilities divided by current assets.QUICK RATIOd 8. The

8、 quick ratio is measured as:a. current assets divided by current liabilities.b. cash on hand plus current liabilities, divided by current assets.c. current liabilities divided by current assets, plus inventory.d. current assets minus inventory, divided by current liabilities.e. current assets minus

9、inventory minus current liabilities.CASH RATIOe 9. The cash ratio is measured as:a. current assets divided by current liabilities.b. current assets minus cash on hand, divided by current liabilities.c. current liabilities plus current assets, divided by cash on hand.d. cash on hand plus inventory, d

10、ivided by current liabilities.e. cash on hand divided by current liabilities.LONG-TERM SOLVENCY RATIOSb 10.Ratios that measure a firm finan'ciasl leverage are known as ratios.a. asset managementb. long-term solvencyc. short-term solvencyd. profitabilitye. market valueTOTAL DEBT RATIOa 11. The fi

11、nancial ratio measured as total assets minus total equity, divided by total assets, is the:a. total debt ratio.b. equity multiplier.c. debt-equity ratio.d. current ratio.e. times interest earned ratio.DEBT-EQUITY RATIO c 12. The debt-equity ratio is measured as total:a. equity minus total debt.b. eq

12、uity divided by total debt.c. debt divided by total equity.d. debt plus total equity.e. debt minus total assets, divided by total equity.EQUITY MULTIPLIERe 13. The equity multiplier ratio is measured as total:a. equity divided by total assets.b. equity plus total debt.c. assets minus total equity, d

13、ivided by total assets.d. assets plus total equity, divided by total debt.e. assets divided by total equity.TIMES INTEREST EARNED RATIOc 14. The financial ratio measured as earnings before interest and taxes, divided by interest expense is the:a. cash coverage ratio.b. debt-equity ratio.c. times int

14、erest earned ratio.d. gross margin.e. total debt ratio.CASH COVERAGE RATIOa 15. The financial ratio measured as earnings before interest and taxes, plus depreciation, divided by interest expense, is the:a. cash coverage ratio.b. debt-equity ratio.c. times interest earned ratio.d. gross margin.e. tot

15、al debt ratio.ASSET MANAGEMENT RATIOSa 16. Ratios that measure how efficiently a firm uses its assets to generate sales are known as ratios.a. asset managementb. long-term solvencyc. short-term solvencyd. profitabilitye. market valueINVENTORY TURNOVERc 17. The inventory turnover ratio is measured as

16、:a. total sales minus inventory.b. inventory times total sales.c. cost of goods sold divided by inventory.d. inventory times cost of goods sold.e. inventory plus cost of goods sold.DAYS' SALES IN INVENTORY e 18. The financial ratio days sales 'in inventory is measured as:a. inventory turnove

17、r plus 365 days.b. inventory times 365 days.c. inventory plus cost of goods sold, divided by 365 days.d. 365 days divided by the inventory.e. 365 days divided by the inventory turnover.RECEIVABLES TURNOVERb 19. The receivables turnover ratio is measured as:a. sales plus accounts receivable.b. sales

18、divided by accounts receivable.c. sales minus accounts receivable, divided by sales.d. accounts receivable times sales.e. accounts receivable divided by sales.DAYS' SALES IN RECEIVABLES d 20. The financial ratio days 'sales in receivables is measured as:a. receivables turnover plus 365 days.

19、b. accounts receivable times 365 days.c. accounts receivable plus sales, divided by 365 days.d. 365 days divided by the receivables turnover.e. 365 days divided by the accounts receivable.TOTAL ASSET TURNOVER b 21. The total asset turnover ratio is measured as:a. sales minus total assets.b. sales di

20、vided by total assets.c. sales times total assets.d. total assets divided by sales.e. total assets plus sales.PROFITABILITY RATIOSd 22. Ratios that measure how efficiently a firm's management uses its assets and equity togenerate bottom line net income are known as ratios.a. asset managementb. l

21、ong-term solvencyc. short-term solvencyd. profitabilitye. market valuePROFIT MARGINa 23. The financial ratio measured as net income divided by sales is known as the firm's:a. profit margin.b. return on assets.c. return on equity.d. asset turnover.e. earnings before interest and taxes.RETURN ON A

22、SSETS b 24. The financial ratio measured as net income divided by total assets is known as the firm ' s:a. profit margin.b. return on assets.c. return on equity.d. asset turnover.e. earnings before interest and taxes.RETURN ON EQUITYc 25. The financial ratio measured as net income divided by tot

23、al equity is known as the firm ' s:a. profit margin.b. return on assets.c. return on equity.d. asset turnover.e. earnings before interest and taxes.PRICE-EARNINGS RATIOd 26. The financial ratio measured as the price per share of stock divided by earnings per share is known as the:a. return on as

24、sets.b. return on equity.c. debt-equity ratio.d. price-earnings ratio.e. Du Pont identity.MARKET-TO-BOOK RATIOe 27. The market-to-book ratio is measured as:a. total equity divided by total assets.b. net income times market price per share of stock.c. net income divided by market price per share of s

25、tock.d. market price per share of stock divided by earnings per share.e. market value of equity per share divided by book value of equity per share.DU PONT IDENTITYa 28. The breaks down return on equity into three component parts.a. Du Pont identityb. return on assetsc. statement of cash flowsd. ass

26、et turnover ratioe. equity multiplierEXTERNAL FUNDS NEEDEDc 29. The External Funds Needed (EFN) equation does not measures the:a. additional asset requirements given a change in sales.b. additional total liabilities financing raised given the change in sales.c. rate of return to shareholders given t

27、he change in sales.d. net income expected to be earned given the change in sales.e. None of the above.SUSTAINABLE GROWTH RATE e 30. To calculate sustainable growth rate, the analyst needs the:a. profit margin.b. payout ratio.c. debt-to-equity ratio.d. asset requirement ratio.e. All of the above.GROW

28、THb 31. Growth can be reconciled with the goal of maximizing firm value:a. because greater growth always adds to value.b. because growth must be an outcome of decisions that maximize NPV.c. because growth and wealth maximization are the same.d. because growth of any type cannot decrease value.e. non

29、e of the above.SUSTAINABLE GROWTH b 32. Sustainable growth can be determined by the:a. profit margin, total asset turnover and the price to earnings ratio.b. profit margin, the payout ratio, the debt-to-equity ratio, and the asset requirement ratio.c. Total growth less capital gains growth.d. Either

30、 A or B.e. None of the above.SUSTAINABLE GROWTHc 33. Which of the following will increase sustainable growth?a. Buy back existing stock.b. Decrease debt.c. Increase profit margin.d. Increase asset requirement ratio.e. Increase dividend payout ratio.LONG TERM PLANNINGd 34. The main objective of long-

31、term financial planning models is to:a. determine the asset requirements given the investment activities of the firm.b. plan for contingencies or uncertain events.c. determine the external financing needs.d. all of the above are correct.e. none of the above are correct.COMMON-SIZE BALANCE SHEETd 35.

32、 On a common-size balance sheet, all accounts are shown as a percentage of:a. income; total assets.b. liability; net income.c. asset; sales.d. liability; total assets.e. equity; sales.RATIO ANALYSISa 36. Which one of the following statements is correct concerning ratio analysis?a. A single ratio is

33、often computed differently by different individuals.b. Ratios do not address the problem of size differences among firms.c. There is only a very limited number of ratios which can be used for analytical purposes.d. Each ratio has a specific formula that is used consistently by all analysts.e. Ratios

34、 can not be used for comparison purposes over periods of time.LIQUIDITY RATIOSa 37. Which of the following are liquidity ratios?I. cash coverage ratioII. current ratioIII. quick ratioIV. inventory turnovera. II and III onlyb. I and II onlyc. II, III, and IV onlyd. I, III, and IV onlye. I, II, III, a

35、nd IVLIQUIDITY RATIOSc 38. An increase in which one of the following accounts increases a firm' s current ratiowithout affecting its quick ratio?a. accounts payableb. cashc. inventoryd. accounts receivablee. fixed assetsLIQUIDITY RATIOSb 39. A supplier, who requires payment within ten days, is m

36、ost concerned with which one of the following ratios when granting credit?a. currentb. cashc. debt-equityd. quicke. total debtLONG-TERM SOLVENCY RATIOSd 40. A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every:a. $1 in equity.b. $1 in total sales.c. $1 in cu

37、rrent assets.d. $.53 in equity.e. $.53 in total assets.LONG-TERM SOLVENCY RATIOSd 41. The long-term debt ratio is probably of most interest to a firm' s:a. credit customers.b. employees.c. suppliers.d. mortgage holder.e. shareholders.LONG-TERM SOLVENCY RATIOS42.A banker considering loaning a fir

38、m money for ten years would most likely prefer thefirm have a debt ratio of _ and a times interest earned ratio of .a.75; .75.b.50; 1.00.c.45; 1.75.d.40; 2.50.e.35; 3.00.LONG-TERM SOLVENCY RATIOS'sb 43. From a cash flow position, which one of the following ratios best measures a firm ability to

39、pay the interest on its debts?a. times interest earned ratiob. cash coverage ratioc. cash ratiod. quick ratioe. interval measureASSET MANAGEMENT RATIOSa 44. The higher the inventory turnover measure, the:a. faster a firm sells its inventory.b. faster a firm collects payment on its sales.c. longer it

40、 takes a firm to sell its inventory.d. greater the amount of inventory held by a firm.e. lesser the amount of inventory held by a firm.ASSET MANAGEMENT RATIOSd 45. Which one of the following statements is correct if a firm has a receivables turnover measure of 10?a. It takes a firm 10 days to collec

41、t payment from its customers.b. It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.c. It takes a firm 36.5 days to pay its creditors.d. The firm has an average collection period of 36.5 days.e. The firm has ten times more in accounts receivable than it does in cash

42、.ASSET MANAGEMENT RATIOSd 46. A total asset turnover measure of 1.03 means that a firm has $1.03 in:a. total assets for every $1 in cash.b. total assets for every $1 in total debt.c. total assets for every $1 in equity.d. sales for every $1 in total assets.e. long-term assets for every $1 in short-t

43、erm assets.PROFITABILITY RATIOSc 47. Puffy ' s Pastries generates five cenotfsnet income for every $1 in sales. Thus, Puffy ' s has a of 5 percent.a. return on assetsb. return on equityc. profit margind. Du Pont measuree. total asset turnoverPROFITABILITY RATIOSa 48. If a firm produces a 10

44、percent return on assets and also a 10 percent return on equity, then the firm:a. has no debt of any kind.b. is using its assets as efficiently as possible.c. has no net working capital.d. also has a current ratio of 10.e. has an equity multiplier of 2.PROFITABILITY RATIOSc 49. If shareholders want

45、to know how much profit a firm is making on their entire investment in the firm, the shareholders should look at the:a. profit margin.b. return on assets.c. return on equity.d. equity multiplier.e. earnings per share.PROFITABILITY RATIOSa 50. BGL Enterprises increases its operating efficiency such t

46、hat costs decrease while sales remain constant. As a result, given all else constant, the:a. return on equity will increase.b. return on assets will decrease.c. profit margin will decline.d. equity multiplier will decrease.e. price-earnings ratio will increase.PROFITABILITY RATIOSd 51. The only d if

47、ference between Joe ' s and Moe ' s is that Joe' s has old, fully depreciatedequipment. Moe ' s just purchased all new equipment which will be depreciated over eight years. Assuming all else equal:a. Joe' s will have a lower profit margin.b. Joe' s will havea lower return on

48、equity.c. Moe' s will have a higher net income.d. Moe' s will have a lower profit margin.e. Moe' s will have a higher return on assets.MARKET VALUE RATIOSe 52. Last year, Alfred' s Automotive had a-eparricneings ratio of 15. This year, the priceearnings ratio is 18. Based on this inf

49、ormation, it can be stated with certainty that:a. the price per share increased.b. the earnings per share decreased.c. investors are paying a higher price for each share of stock purchased.d. investors are receiving a higher rate of return this year.e. either the price per share, the earnings per sh

50、are, or both changed.MARKET VALUE RATIOb 53. Turner ' s Inc. has a pri-ceearnings ratio of 16. Alfred' s Co. h-eaasraninpgrisceratio of19. Thus, you can state with certainty that one share of stock in Alfred' s:a. has a higher market price than one share of stock in Turner' s.'s.

51、' s stocb. has a higher market price per dollar of earnings than does one share of Turnerc. sells at a lower price per share than one share of Turner' s.d. represents a larger percentage of firm ownership than does one share of Turnere. earns a greater profit per share than does one share of

52、 Turner' s stock.MARKET VALUE RATIOSb 54. Which two of the following are most apt to cause a firm to have a higher price-earnings ratio?I. slow industry outlookII. high prospect of firm growthIII. very low current earningsIV. investors with a low opinion of the firma. I and II onlyb. II and III

53、onlyc. II and IV onlyd. I and III onlye. III and IV only MARKET VALUE RATIOSd 55. Vinnie ' s Motors has a mark-teot-book ratio of 3. The book value per share is $4.00.This means that a $1 increase in the book value per share will:a. cause the accountants to increase the equity of the firm by an

54、additional $2.b. increase the market price per share by $1.c. increase the market price per share by $12.d. tend to cause the market price per share to rise.e. only affect book values but not market values. MARKET VALUE RATIOSd 56. Which one of the following sets of ratios applies most directly to s

55、hareholders?a. return on assets and profit marginb. quick ratio and times interest earnedc. price-earnings ratio and debt-equity ratiod. market-to-book ratio and price-earnings ratioe. cash coverage ratio and times equity multiplierDU PONT IDENTITYb 57. The three parts of the Du Pont identity can be

56、 generally described as:I. operating efficiency, asset use efficiency and firm profitability.II. financial leverage, operating efficiency and asset use efficiency.III. the equity multiplier, the profit margin and the total asset turnover.IV. the debt-equity ratio, the capital intensity ratio and the

57、 profit margin.a. I and II onlyb. II and III onlyc. I and IV onlyd. I and III onlye. III and IV onlyDU PONT IDENTITYe 58. If a firm decreases their operating costs, all else constant, then:a. the profit margin increases while the equity multiplier decreases.b. the return on assets increases while the return on equity decreases.c. the total asset turnover rate decreases while the profit margin increases.d. both the profit margin and the e