Finance 15 question multiple choice timed quiz 1 hour

Hello,

 

I have a 15 minute timed quiz in Finance regarding Financial Analysis and Financial Planning. I will post the questions once I shake hands.

Question 1 of 15 1.0 Points

Assets are listed on the balance sheet in order of:

I) Decreasing liquidity

II) Decreasing size

III) Increasing size

IV) Relative life

A. I only

B. III and IV only

C. II only

D. IV only

Question 2 of 15 1.0 Points

The difference between Total Assets of a firm and its Total Liabilities is called.

A. Net working capital

B. Net current assets

C. Net worth

D. None of the above

Question 3 of 15 1.0 Points

The difference between Current Assets of a firm and its Current Liabilities is called.

A. Net worth

B. Net working capital

C. Gross working capital

D. None of the above

Question 4 of 15 1.0 Points

Which of the following is an example of leverage ratios?

A. Debt-Equity ratio

B. Quick ratio

C. Payout ratio

D. Return on equity

Question 5 of 15 1.0 Points

Which of the following is an example of liquidity ratios?

A. Times interest earned (TIE)

B. P/E ratio

C. Return on equity

D. Quick ratio

Question 6 of 15 1.0 Points

Given the following data:

Current assets = 500

Current liabilities = 250

Inventory = 200

Account receivables = 200

Calculate the current ratio:

A. 2.0

B. 1.0

C. 1.5

D. None of the above

Question 7 of 15 1.0 Points

Given the following data:

Sales = 3200

Cost of goods sold = 1600

Average total assets = 1600

Average inventory = 200

Calculate the asset turnover ratio:

A. 2.0

B. 0.9375

C. 1.33

D. None of the above

Question 8 of 15 1.0 Points

Efficiency ratios indicate:

I) How productively is the firm utilizing its assets.

II) How liquid is the firm.

III) How profitable is the firm.

IV) How highly is the firm valued by investors.

A. I only

B. II only

C. III only

D. III and IV only

Question 9 of 15 1.0 Points

Profitability ratios indicate:

I) How productively is the firm utilizing its assets.
II) How liquid is the firm.
III) How profitable is the firm.

IV) How highly is the firm valued by the investors.

A. I only
B. II only
C. III only

D. III and IV only

Question 10 of 15 1.0 Points

Given the following assets;

I) Long-term assets

II) Inventories

III) Receivables

IV) Marketable securities

Which is the least liquid of these assets?

A. I

B. II

C. III

D. IV

Question 11 of 15 1.0 Points

Given the following data:

Total current assets = $852

Total current liabilities = $406

Long-term debt = $442

Calculate the net working capital.

A. $446

B. $852

C. $410

D. None of the above

Question 12 of 15 1.0 Points

The cash budget is the primary short-term financial planning tool. The key reasons a cash budget is created are:

I) To estimate your investment in assets

II) To estimate the size and timing of your new cash flows

III) To prepare for potential financing needs

A. I only

B. II and III only

C. II only

D. III only

Question 13 of 15 1.0 Points

Net working capital is defined as:

A. The current assets in a business

B. The difference between current assets and current liabilities

C. The present value of all short-term cash flows

D. The difference between all assets and liabilities

Question 14 of 15 1.0 Points

Cash inflow in cash budgeting comes mainly from:

A. Collection on accounts receivable

B. Short-term debt

C. Issue of securities

D. None of the above

Question 15 of 15 1.0 Points

The firm’s internal growth rate is defined as:

A. retained earnings/net income

B. retained earnings/net assets

C. retained earnings/total assets

D. none of the above