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KPIs in Financial Management 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!

Page 1

Question 1 1. The _____ presents a company's assets, or items they own, and liabilities, or obligations they owe.

Question 2 2. Which shows the correct formula for calculating the operating cash ratio?

Question 3 3. Price elasticity of demand is a measure used in economics to show how consumers respond or demand a product based on what?

Question 4 4. If Company B sold one more product and their total revenue increased from $150,000 to $150,150, their _______ would be $150.

Question 5 5. The acid ratio is also known as the:

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Question 6 6. Which of the following is a computation used to measure a company's ability to pay its short term debt?

Question 7 7. When are fixed assets converted into cash?

Question 8 8. Which of the following is not an activity ratio?

Question 9 9. Total Revenue- Total Expenses is the formula for calculating what?

Question 10 10. Byron makes and sells flower arrangements for $50.00 per arrangement. His total expenses for each arrangement is $35.00. What is the net profit that Byron makes for each flower arrangement?

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Question 11 11. If the DPO is greater than the DIO + DSO, what is the result?

Question 12 12. How long is the cash conversion cycle if DIO is 100 days, DSO is 24 days and DPO is 32 days?

Question 13 13. 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 14 14. 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?

Question 15 15. Revenue can be found on which type of financial statement?

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Question 16 16. Choose the best analysis of gross profit margin.

Question 17 17. If the ROI formula yields a negative number, what does this mean?

Question 18 18. What does ROI measure?

Question 19 19. If your business collected $500,000 in revenue and had $350,000 in expenses, what is your net profit margin?

Question 20 20. Which financial metric calculates the annual percentage return on an investment?

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Question 21 21. Debt to equity ratio is calculated by _____.

Question 22 22. Which ratio measures the leverage of a company?

Question 23 23. What is the best case scenario when comparing a company's net profit margin to its competitors?

Question 24 24. What is the formula for calculating net profit margin?

Question 25 25. XYZ Corporation's accountant calculates a liquidity ratio that removes inventory from the formula to get a truer analysis of their ability to pay current liabilities with current assets. Which ratio did he use?

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Question 26 26. What revenue term in economics refers to the total receipts from sales of a given quantity of goods or services?

Question 27 27. What would a current ratio of 1 tell us about a company?

Question 28 28. Which ratio is not used to determine how efficient a business is at converting its current assets into cash?

Question 29 29. Net Profit is also known as _____.

Question 30 30. Which component piece of the cash conversion cycle shows improvement if the number of days increases?

KPIs in Financial Management Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "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. You will lose your work if you close or refresh this page. Good luck!

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