Finance Questions

A common-size income statement expresses dividends as 3.6 percent. This means that dividends represent 3.6 percent ofA) net income.B) total assets.C) sales.D) taxable earnings.E) total owners' equity.

Which one of these is calculated as: 365 / (Cost of goods sold / Inventory)?A) Total asset turnoverB) Inventory turnoverC) Days sales in receivablesD) Days sales in inventoryE) Capital intensity ratio

A supplier, who requires payment this week, should be most concerned about which one of its customer's ratios?A) Current ratioB) Debt-equity ratioC) Cash ratioD) Quick ratioE) Total debt ratio

All of the following are financial leverage ratios excepttheA) current ratio.B) cash coverage ratio.C) total debt ratio.D) times interest earned ratio.E) equity multiplier.

EBITDA is the abbreviation for earnings beforeA) insurance, taxes, depreciation, and accounting expenses.B) interest, taxes, depreciation, and accrued expenses.C) insurance, taxes, depreciation, and accrued expenses.D) interest, taxes, depreciation, and amortization.E) interest, taxes, and deferred accounting overhead.

From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts?A) Times interest earned ratioB) Cash coverage ratioC) Cash ratioD) Quick ratioE) Debt-equity ratio

Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress are often referred to asA) asset management ratios.B) liquidity measures.C) leverage ratios.D) profitability ratios.E) utilization ratios.

Which one of these best measures a firm's long-run ability to meet its obligations?A) Cash ratioB) Total asset turnoverC) EV multipleD) Return on equityE) Equity multiplier

A common-size balance sheet will express accounts receivable as a percentage ofA) sales.B) current assets.C) net working capital.D) total assets.E) total owners' equity.

On a common-size income statement, depreciation will beA) omitted since it is a noncash expense.B) added back to convert net income to cash flows.C) expressed as a percentage of total assets.D) expressed as a percentage of sales.E) expressed as a percentage of gross fixed assets.

What is one important distinction between different types of fixed cost is the?

If you invested 100 per month in mutual funds from age 25 to 65, you could have _____ million

In America, nearly _ out of 10 people live paycheck to paycheck

Saving is for 5 years or ___________?

Investing is for 5 years or ___________?

What causes you to have money is you _____ some of it

Invest consistently over time so that compound interest creates

$48 of Americans have less than _________ saved for Retirement

To build wealth and become a millionaire, you need

___ of Americans say budgeting is important