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!

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Question 1 1. XYZ Company had $1,750,000.00 in total revenue. The total expenses for the company were $1,175,000.00. What was the net profit for XYZ Company?

Question 2 2. Total Revenue- Total Expenses is the formula for calculating what?

Question 3 3. 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?

Question 4 4. Which shows the correct formula for calculating the operating cash ratio?

Question 5 5. Choose the best analysis of gross profit margin.

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Question 6 6. Choose the best answer as it relates to total revenue.

Question 7 7. A company has $35,000 in current assets, $15,000 in long term assets, $25,000 in current liabilities and $45,000 in long term liabilities. What is its current ratio?

Question 8 8. Which of the following is a computation used to measure a company's ability to pay its short term debt?

Question 9 9. Choose the BEST answer to explain the difference between solvency and liquidity.

Question 10 10. Which ratio measures the leverage of a company?

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Question 11 11. If your business collected $500,000 in revenue and had $350,000 in expenses, what is your net profit margin?

Question 12 12. Which financial metric calculates the annual percentage return on an investment?

Question 13 13. You purchased some stock a year ago for $10,000. It's now worth only $9,900. You received $200 in dividends. What is your ROI?

Question 14 14. You just purchased a house for $100,000 at a local county auction. You spent $50,000 to renovate the house and netted $160,000 after sale expenses. What is your ROI?

Question 15 15. What is the formula for calculating net profit margin?

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Question 16 16. What is net profit margin?

Question 17 17. Which activity ratio uses accounts receivable on its calculation?

Question 18 18. Which ratio is not used to determine how efficient a business is at converting its current assets into cash?

Question 19 19. If the average inventory is 10,000 and cost of goods sold per day is 100, how much is the days inventory outstanding?

Question 20 20. If the average accounts payable is 3,000 and cost of goods sold for the year is 20,000, how much is days payables outstanding?

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Question 21 21. 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 22 22. Your cookware company generated net sales of $5,000,000 last year and a had net operating profit of $250,000. What was your operating margin?

Question 23 23. Total Revenue (TR) = Price (P) x

Question 24 24. What revenue term in economics refers to the total receipts from sales of a given quantity of goods or services?

Question 25 25. 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 26 26. The _____ presents a company's assets, or items they own, and liabilities, or obligations they owe.

Question 27 27. Choose the correct formula for gross profit margin.

Question 28 28. What would a current ratio of 1 tell us about a company?

Question 29 29. Debt to equity ratio is calculated by _____.

Question 30 30. Which of the financial metrics takes into account staffing and recruitment costs?

KPIs in Financial Management 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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