1、精選優(yōu)質(zhì)文檔-傾情為你奉上CHAPTER 3Financial Statement Analysis, Planning, and GrowthMultiple Choice Questions:I.DEFINITIONSLONG-TERM PLANNINGc1.One key reason a long-term financial plan is developed is because:a.the plan determines your financial policy. b.the plan determines your investment policy. c.there are

2、 direct connections between achievable corporate growth and the financial policy. d.there is unlimited growth possible in a well-developed financial plan. e.None of the above. PRO FORMA STATEMENTSb2.Projected future financial statements are called:a.plug statements. forma statements. c.reconci

3、led statements. d.aggregated statements. e.none of the above.PERCENTAGE OF SALESe3.The percentage of sales method: a.requires that all accounts grow at the same rate. b.separates accounts that vary with sales and those that do not vary with sales. c.allows the analyst to calculate how much financing

4、 the firm will need to support the predicted sales level. d.Both A and B. e.Both B and C. COMMON-SIZE STATEMENTSe4.A _ standardizes items on the income statement and balance sheet as a percentage of total sales and total assets, respectively.a.tax reconciliation statementb.statement of standardizati

5、onc.statement of cash mon-base year mon-size statementFINANCIAL RATIOSa5.Relationships determined from a firms financial information and used for comparison purposes are known as:a.financial parison statements.c.dimensional analysis.d.scenario analysis.e.solvency

6、analysis.SHORT-TERM SOLVENCY RATIOSc6.Financial ratios that measure a firms ability to pay its bills over the short run without undue stress are known as _ ratios.a.asset managementb.long-term solvencyc.short-term fitabilitye.market valueCURRENT RATIOb7.The current ratio is measured as:

7、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 RATIOd8.The quick ratio is measured as:a.cur

8、rent 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 inventory minus current liabilities.CA

9、SH RATIOe9.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, divided by current liabilities.e.cash on hand

10、 divided by current liabilities.LONG-TERM SOLVENCY RATIOSb10.Ratios that measure a firms financial leverage are known as _ ratios.a.asset managementb.long-term solvencyc.short-term fitabilitye.market valueTOTAL DEBT RATIOa11.The financial ratio measured as total assets minus total equit

11、y, 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 RATIOc12.The debt-equity ratio is measured as total:a.equity minus total debt.b.equity divided by total debt.c.debt divided by total equity.d.debt p

12、lus total equity.e.debt minus total assets, divided by total equity.EQUITY MULTIPLIERe13.The equity multiplier ratio is measured as total:a.equity divided by total assets.b.equity plus total debt.c.assets minus total equity, divided by total assets.d.assets plus total equity, divided by total debt.e

13、.assets divided by total equity.TIMES INTEREST EARNED RATIOc14.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 interest earned ratio.d.gross margin.e.total debt ratio.CASH COVERAGE RATIOa15.The f

14、inancial 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.total debt ratio.ASSET MANAGEMENT RATIOSa16.Ratios that measure how efficiently a firm uses i

15、ts assets to generate sales are known as _ ratios.a.asset managementb.long-term solvencyc.short-term fitabilitye.market valueINVENTORY TURNOVERc17.The inventory turnover ratio is measured as:a.total sales minus inventory.b.inventory times total sales.c.cost of goods sold divided by inve

16、ntory.d.inventory times cost of goods sold.e.inventory plus cost of goods sold.DAYS SALES IN INVENTORYe18.The financial ratio days sales in inventory is measured as:a.inventory turnover plus 365 days.b.inventory times 365 days.c.inventory plus cost of goods sold, divided by 365 days.d.365 days divid

17、ed by the inventory.e.365 days divided by the inventory turnover.RECEIVABLES TURNOVERb19.The receivables turnover ratio is measured as:a.sales plus accounts receivable.b.sales divided by accounts receivable.c.sales minus accounts receivable, divided by sales.d.accounts receivable times sales.e.accou

18、nts receivable divided by sales.DAYS SALES IN RECEIVABLESd20.The financial ratio days sales in receivables is measured as:a.receivables turnover plus 365 days.b.accounts receivable times 365 days.c.accounts receivable plus sales, divided by 365 days.d.365 days divided by the receivables turnover.e.3

19、65 days divided by the accounts receivable.TOTAL ASSET TURNOVERb21.The total asset turnover ratio is measured as:a.sales minus total assets.b.sales divided by total assets.c.sales times total assets.d.total assets divided by sales.e.total assets plus sales.PROFITABILITY RATIOSd22.Ratios that measure

20、 how efficiently a firms management uses its assets and equity to generate bottom line net income are known as _ ratios.a.asset managementb.long-term solvencyc.short-term fitabilitye.market valuePROFIT MARGINa23.The financial ratio measured as net income divided by sales is known as the

21、 firms:fit margin.b.return on assets.c.return on equity.d.asset turnover.e.earnings before interest and taxes.RETURN ON ASSETSb24.The financial ratio measured as net income divided by total assets is known as the firms:fit margin.b.return on assets.c.return on equity.d.asset turnover.e.ear

22、nings before interest and taxes.RETURN ON EQUITYc25.The financial ratio measured as net income divided by total equity is known as the firms:fit margin.b.return on assets.c.return on equity.d.asset turnover.e.earnings before interest and taxes.PRICE-EARNINGS RATIOd26.The financial ratio measure

23、d as the price per share of stock divided by earnings per share is known as the:a.return on assets.b.return on equity.c.debt-equity ratio.d.price-earnings ratio.e.Du Pont identity.MARKET-TO-BOOK RATIOe27.The market-to-book ratio is measured as:a.total equity divided by total income time

24、s market price per share of income divided by market price per share of stock.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 IDENTITYa28.The _ breaks down return on equity into three com

25、ponent parts.a.Du Pont identityb.return on assetsc.statement of cash flowsd.asset turnover ratioe.equity multiplierEXTERNAL FUNDS NEEDEDc29.The External Funds Needed (EFN) equation does not measures the:a.additional asset requirements given a change in sales. b.additional total liabilities financing

26、 raised given the change in sales. c.rate of return to shareholders given the change in sales. income expected to be earned given the change in sales. e.None of the above. SUSTAINABLE GROWTH RATEe30.To calculate sustainable growth rate, the analyst needs the: fit margin. b.payout ratio. c

27、.debt-to-equity ratio. d.asset requirement ratio. e.All of the above. GROWTHb31.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

28、are the same. d.because growth of any type cannot decrease value. e.none of the above. SUSTAINABLE GROWTHb32.Sustainable growth can be determined by the:fit margin, total asset turnover and the price to earnings ratio. fit margin, the payout ratio, the debt-to-equity ratio, and the asset r

29、equirement ratio. c.Total growth less capital gains growth. d.Either A or B. e.None of the above. SUSTAINABLE GROWTHc33.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 divide

30、nd payout ratio. LONG TERM PLANNINGd34.The main objective of long-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 corre

31、ct. e.none of the above are correct. COMMON-SIZE BALANCE SHEETd35.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 ANALYSISa36.Which one of the following statem

32、ents is correct concerning ratio analysis?a.A single ratio is 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 specif

33、ic formula that is used consistently by all analysts.e. Ratios can not be used for comparison purposes over periods of time.LIQUIDITY RATIOSa37.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.I

34、I, III, and IV onlyd. I, III, and IV onlye. I, II, III, and IVLIQUIDITY RATIOSc38.An increase in which one of the following accounts increases a firms current ratio without affecting its quick ratio?a.accounts payableb.cashc.inventoryd.accounts receivablee.fixed assetsLIQUIDITY RATIOSb39.A supplier,

35、 who requires payment within ten days, is most concerned with which one of the following ratios when granting credit?a.currentb. cashc. debt-equityd. quicke. total debtLONG-TERM SOLVENCY RATIOSd40.A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every:a.$1 in

36、equity.b.$1 in total sales.c.$1 in current assets.d. $.53 in equity.e. $.53 in total assets.LONG-TERM SOLVENCY RATIOSd41.The long-term debt ratio is probably of most interest to a firms:a.credit customers.b. employees.c. suppliers.d. mortgage holder.e. shareholders.LONG-TERM SOLVENCY RATIOSe42.A ban

37、ker considering loaning a firm money for ten years would most likely prefer the firm 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 RATIOSb43.From a cash flow position, which one of the following ratios b

38、est measures a firms ability to pay the interest on its debts?a.times interest earned ratiob. cash coverage ratioc. cash ratiod. quick ratioe. interval measureASSET MANAGEMENT RATIOSa44.The higher the inventory turnover measure, the:a.faster a firm sells its inventory.b. faster a firm collects payme

39、nt on its sales.c. longer it 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 RATIOSd45.Which one of the following statements is correct if a firm has a receivables turnover measure of 10?a.It takes

40、 a firm 10 days to collect 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 receiv

41、able than it does in cash.ASSET MANAGEMENT RATIOSd46.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 f

42、or every $1 in short-term assets.PROFITABILITY RATIOSc47.Puffys Pastries generates five cents of net income for every $1 in sales. Thus, Puffys has a _ of 5 percent.a.return on assetsb. return on equityc. profit margind. Du Pont measuree. total asset turnoverPROFITABILITY RATIOSa48.If a firm produce

43、s a 10 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 RATIOSc49.If shareholders w

44、ant to know how much profit a firm is making on their entire investment in the firm, the shareholders should look at the:fit margin.b. return on assets.c. return on equity.d. equity multiplier.e. earnings per share.PROFITABILITY RATIOSa50.BGL Enterprises increases its operating efficiency such

45、that 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 fit margin will decline.d.equity multiplier will decrease.e.price-earnings ratio will increase.PROFITABILITY RATIOSd51.The only difference

46、 between Joes and Moes is that Joes has old, fully depreciated equipment. Moes just purchased all new equipment which will be depreciated over eight years. Assuming all else equal:a.Joes will have a lower profit margin.b.Joes will have a lower return on equity.c.Moes will have a higher net income.d.

47、Moes will have a lower profit margin.e. Moes will have a higher return on assets.MARKET VALUE RATIOSe52.Last year, Alfreds Automotive had a price-earnings ratio of 15. This year, the price earnings ratio is 18. Based on this information, it can be stated with certainty that:a.the price per share inc

48、reased.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 share, or both changed.MARKET VALUE RATIOb53.Turners Inc. has a price-earnings

49、ratio of 16. Alfreds Co. has a price-earnings ratio of 19. Thus, you can state with certainty that one share of stock in Alfreds:a.has a higher market price than one share of stock in Turners.b.has a higher market price per dollar of earnings than does one share of Turners.c.sells at a lower price p

50、er share than one share of Turners.d.represents a larger percentage of firm ownership than does one share of Turners stock.e.earns a greater profit per share than does one share of Turners stock.MARKET VALUE RATIOSb54.Which two of the following are most apt to cause a firm to have a higher price-ear

51、nings 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 onlyc.II and IV onlyd.I and III onlye.III and IV onlyMARKET VALUE RATIOSd55.Vinnies Motors has a market-to-book ratio of 3. The book v

52、alue 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 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

53、 rise.e.only affect book values but not market values.MARKET VALUE RATIOSd56.Which one of the following sets of ratios applies most directly to shareholders?a.return on assets and profit marginb. quick ratio and times interest earnedc. price-earnings ratio and debt-equity ratiod. market-to-book rati

54、o and price-earnings ratioe. cash coverage ratio and times equity multiplierDU PONT IDENTITYb57.The three parts of the Du Pont identity can be 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 profit margin.a.I and II onl