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Test your basic knowledge |
Financial Statement Analysis
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. CV NI
(market rate at issue)*(balance sheet value of the liability at beg period)
EBIT/total asset
STD NI/Mean NI
Annual Sales/Average receivables
2. Return on equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/average total equity
NI available to common/average common equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
3. CV Operating Income
Gross Profit/Revenue
STD OI/mean OI
Total Debt/Total shareholders' equity
CFO/average total assets
4. Receivables Turnover
(market rate at issue)*(balance sheet value of the liability at beg period)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD NI/Mean NI
Annual Sales/Average receivables
5. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]
CFO-fixed capital investment+net borrowing
Purchases/Average trade payable
6. Working Capital Turnover
CFO/average total assets
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Revenue/Average Working Capital
Cash+Marketable Securities+ Receivables)/Current Liabilities
7. Cash to ROE
(market rate at issue)*(balance sheet value of the liability at beg period)
[NI/sales][Sales/Assets][Assets/Equity]
CFO/average total equity
Gross Profit/Revenue
8. Original DuPont:ROE
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/average total equity
[NI/sales][Sales/Assets][Assets/Equity]
EBIT/total asset
9. Income tax expense
NI/average total equity
Taxes payable+Change in DTL - Change in DTA
CFO/Net Revenue
CFO/Total debt
10. Debt payment
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
CFO/cash long-term debt repayment
(NI-preferred dividends)/weighted average of common shares
Total debt/(Total debt+Total shareholders equity)
11. CV sales
STD of Sales/Mean Sales
(market rate at issue)*(balance sheet value of the liability at beg period)
Total Debt/Total Asset
(CFO-preferred dividends)/weighted average number of common shares
12. Cash to income
NI/average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/operating income
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
13. FCFE
CFO-fixed capital investment+net borrowing
CFO/operating income
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/Revenue
14. Pretax Income
EBT/Revenue
CFO/cash paid for long term asset
Revenue/Average Total Assets
365/payable turnover ratio
15. Straight Line depreciation
Cost-Salvage/useful Life
EBT/Revenue
CA/CL
CFO/dividends paid
16. Basic EPS
EBIT/total asset
Annual Sales/Average receivables
(NI-preferred dividends)/weighted average of common shares
(EBIT+lease payments)/(interest payments+lease payments)
17. Payable Turnover
CFO/Net Revenue
Cost-Salvage/useful Life
Purchases/Average trade payable
365/receivables turnover
18. Gross Profit Margin
CFO/cash outflows from investing and financing
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Gross Profit/Revenue
365/Inventory turnover
19. Investing and financing
365/Inventory turnover
CFO/cash outflows from investing and financing
(EBIT+lease payments)/(interest payments+lease payments)
Taxes payable+Change in DTL - Change in DTA
20. Operating return on assets
EBIT/total asset
CFO/Total debt
NI available to common/average common equity
(2/useful life)*(Cost-Depreciation)
21. Units in production
NI/total capital
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total Asset
22. Current Ratio
Purchases/Average trade payable
CA/CL
Revenue/Average Working Capital
Gross Profit/Revenue
23. Debt coverage
NI/Revenue
Average Total Asset/Average total equity
CFO/Total debt
Total debt/(Total debt+Total shareholders equity)
24. CF to Revenue
CFO/operating income
Cost-Salvage/useful Life
CFO/Net Revenue
CFO/Total debt
25. CF per share
[NI/sales][Sales/Assets][Assets/Equity]
CFO/cash outflows from investing and financing
(CFO-preferred dividends)/weighted average number of common shares
CFO/dividends paid
26. Day of inventory on hand
365/Inventory turnover
CFO/cash long-term debt repayment
365/payable turnover ratio
CFO/dividends paid
27. DDB
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity
COGS/Average Inventory
NI/average total equity
28. Debt to capital
Total debt/(Total debt+Total shareholders equity)
CFO-fixed capital investment+net borrowing
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Net Revenue
29. Debt to Asset
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Total Assets
Total Debt/Total Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
30. Cash Conversion Cycle
COGS/Average Inventory
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
(EBIT+lease payments)/(interest payments+lease payments)
31. Net Profit Margin
365/Inventory turnover
Begininng inventories+purchases-COGS
NI/Revenue
STD NI/Mean NI
32. Inventory turnover
Annual Sales/Average receivables
COGS/Average Inventory
CFO-fixed capital investment+net borrowing
Taxes payable+Change in DTL - Change in DTA
33. Return on common equity
Total debt/(Total debt+Total shareholders equity)
NI available to common/average common equity
(EBIT+lease payments)/(interest payments+lease payments)
(CFO-preferred dividends)/weighted average number of common shares
34. Debt to equity
35. Diluted EPS
Average Total Asset/Average total equity
ROCE - ROA
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
COGS/Average Inventory
36. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
EBIT/total asset
(CFO+interest paid+taxes paid )/interest paid
Revenue/Average Working Capital
37. FCFF
(2/useful life)*(Cost-Depreciation)
CFO-fixed capital investment+net borrowing
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/cash paid for long term asset
38. Return on total capital
(CFO-preferred dividends)/weighted average number of common shares
EBT/Revenue
NI/total capital
CA/CL
39. Interest coverage
(CFO+interest paid+taxes paid )/interest paid
365/receivables turnover
(2/useful life)*(Cost-Depreciation)
EBIT/total asset
40. Cash Ratio
CFO/average total assets
(Cash+Marketable Securities)/Current Liabilities
CFO/cash paid for long term asset
Revenue/Average Total Assets
41. Dividend payment
(CFO-preferred dividends)/weighted average number of common shares
ROCE - ROA
Revenue/Average Total Assets
CFO/dividends paid
42. Fixed assets turnover
NI/total capital
Revenue/Average Fixed Assets
NI available to common/average common equity
STD NI/Mean NI
43. Days of sales outstanding
CFO/cash paid for long term asset
CA/CL
CFO/cash outflows from investing and financing
365/receivables turnover
44. Operating Profit Margin
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
EBIT/Revenue
CFO/dividends paid
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
45. Cash to ROA
EBT/Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Annual Sales/Average receivables
CFO/average total assets
46. Financial Leverage
Annual Sales/Average receivables
Average Total Asset/Average total equity
CFO/cash long-term debt repayment
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
47. Ending inventories
Begininng inventories+purchases-COGS
Revenue/Average Working Capital
ROCE - ROA
(2/useful life)*(Cost-Depreciation)
48. Defensive interval
NI/Revenue
Average Total Asset/Average total equity
365/payable turnover ratio
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
49. Total asset turnover
Total debt/(Total debt+Total shareholders equity)
NI/total capital
ROCE - ROA
Revenue/Average Total Assets
50. Number of days of payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
365/payable turnover ratio