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Financial Analysis & Reporting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Choose the accurate formula to calculate the current ratio.

Question 2 2. Which ratios are considered baseline ratios?

Question 3 3. Which is true of baseline ratios?

Question 4 4. Last period, your company had a debt ratio of 0.6. This period, the debt ratio was 0.8. How would you interpret these results?

Question 5 5. What financial report tells you if the company suffered a loss or earned a profit?

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Question 6 6. What financial report can help you figure out how well a company is managing its money?

Question 7 7. What is the balance sheet equation?

Question 8 8. The balance sheet is a part of which of the following?

Question 9 9. Choose the best answer as it relates to a baseline ratio.

Use this material to answer question #10

Vandox Company Ltd is a company looking to secure a loan with a commercial bank.

The following details are available:

1. Interest expense = $58,000

2. Earnings = $215,000

3. Total liabilities = $143,000

4. Total assets = $450,000

5. Total equity = $29,000

Question 10 10. Calculate the interest expense ratio.

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Question 11 11. Why do business owners depend on the income statement?

Question 12 12. Explain the purpose of an income statement.

Question 13 13. Which of the following is an example of a fixed cost?

Question 14 14. The difference between the selling price of an item and its variable cost is known as which of the following?

Question 15 15. Debt to equity ratio is calculated by _____.

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Question 16 16. Which of these is NOT true regarding the equity ratio?

Question 17 17. Which of the following is the simple formula for retained earnings?

Question 18 18. What is the amount of income after expenses that is not given out to stockholders in the form of dividends?

Question 19 19. What does the current ratio show?

Question 20 20. XYZ Industry currently has $475,000 in assets, and their liabilities are $100,000. What is their current ratio?

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Question 21 21. What is the difference between a Statement of Cash Flows and Income Statement?

Question 22 22. If an investor wanted to see how much money was maintained and reinvested in the company, which financial statement would give that information?

Question 23 23. The statement of cash flows is broken down into how many activities?

Question 24 24. What is the statement of cash flows?

Question 25 25. Investors have invested a total of $1,000,000 in your company, which netted $82,500 in income during the same period. What is the return on investment during this period?

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Question 26 26. Your retail business has total assets valued at $12,000,000 and earned $975,000 in net sales during the same time period. What is its return on assets?

Question 27 27. The formula for computing a company's debt ratio is _____.

Question 28 28. On what financial statement can you find the total asset and total liabilities values?

Question 29 29. The _____ presents a company's assets, or items they own, and liabilities, or obligations they owe.

Question 30 30. What is the formula for the current ratio?

Financial Analysis & Reporting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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