Test your basic knowledge |

Financial Statement Analysis

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. Interest expense
Revenue/Average Total Assets
(EBIT+lease payments)/(interest payments+lease payments)
(market rate at issue)*(balance sheet value of the liability at beg period)
Taxes payable+Change in DTL - Change in DTA

2. Inventory turnover
(EBIT+lease payments)/(interest payments+lease payments)
COGS/Average Inventory
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Revenue/Average Working Capital

3. Debt coverage
365/Inventory turnover
CFO/Total debt
CFO/cash outflows from investing and financing
Total Debt/Total Asset

4. CF to Revenue
ROCE - ROA
CFO/Net Revenue
CFO/dividends paid
(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)

5. Ending inventories
NI/average total equity
Begininng inventories+purchases-COGS
EBT/Revenue
EBIT/total asset

6. Dividend payment
Purchases/Average trade payable
NI available to common/average common equity
CFO/cash long-term debt repayment
CFO/dividends paid

7. Days of sales outstanding
365/receivables turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Average Total Asset/Average total equity

8. Return on Asset
(NI-preferred dividends)/weighted average of common shares
EBIT/Revenue
(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)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

9. Fixed assets turnover
(CFO-preferred dividends)/weighted average number of common shares
Purchases/Average trade payable
Revenue/Average Fixed Assets
EBIT/Revenue

10. CV Operating Income
NI/total capital
Begininng inventories+purchases-COGS
STD OI/mean OI
Revenue/Average Working Capital

11. Cash to ROA
Purchases/Average trade payable
Revenue/Average Working Capital
CFO/cash paid for long term asset
CFO/average total assets

12. Interest coverage
STD NI/Mean NI
Begininng inventories+purchases-COGS
CFO/operating income
(CFO+interest paid+taxes paid )/interest paid

13. Payable Turnover
Purchases/Average trade payable
CFO/operating income
NI/total capital
STD of Sales/Mean Sales

14. Straight Line depreciation
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Cost-Salvage/useful Life
NI/total capital
Cash+Marketable Securities+ Receivables)/Current Liabilities

15. Fixed charged coverage
Cost-Salvage/useful Life
EBIT/total asset
STD NI/Mean NI
(EBIT+lease payments)/(interest payments+lease payments)

16. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
(Cash+Marketable Securities)/Current Liabilities
COGS/Average Inventory

17. Working Capital Turnover
Begininng inventories+purchases-COGS
STD NI/Mean NI
Revenue/Average Working Capital
365/receivables turnover

18. Debt to Asset
(EBIT+lease payments)/(interest payments+lease payments)
CFO-fixed capital investment+net borrowing
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total Debt/Total Asset

19. CF per share
(CFO-preferred dividends)/weighted average number of common shares
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total Asset
CFO/cash paid for long term asset

20. Income tax expense
Taxes payable+Change in DTL - Change in DTA
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO-preferred dividends)/weighted average number of common shares
STD OI/mean OI

21. Quick Ratio
Purchases/Average trade payable
(Cash+Marketable Securities)/Current Liabilities
(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)
Cash+Marketable Securities+ Receivables)/Current Liabilities

22. Diluted EPS
(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)
EBIT/Revenue
Total Debt/Total shareholders' equity
(EBIT+lease payments)/(interest payments+lease payments)

23. Cash Ratio
CFO/operating income
Gross Profit/Revenue
CFO/cash long-term debt repayment
(Cash+Marketable Securities)/Current Liabilities

24. FCFE
CFO-fixed capital investment+net borrowing
Purchases/Average trade payable
STD NI/Mean NI
365/Inventory turnover

25. Number of days of payable
NI available to common/average common equity
(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)
STD NI/Mean NI
365/payable turnover ratio

26. FCFF
Begininng inventories+purchases-COGS
NI/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

27. Debt to equity

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

28. Operating Profit Margin
(EBIT+lease payments)/(interest payments+lease payments)
STD NI/Mean NI
Annual Sales/Average receivables
EBIT/Revenue

29. Gross Profit Margin
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/operating income
Gross Profit/Revenue
COGS/Average Inventory

30. Receivables Turnover
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total shareholders' equity
Annual Sales/Average receivables
CFO/Total debt

31. Total asset turnover
(market rate at issue)*(balance sheet value of the liability at beg period)
Revenue/Average Total Assets
STD OI/mean OI
Annual Sales/Average receivables

32. Debt payment
NI/average total equity
Total Debt/Total Asset
CFO/cash long-term debt repayment
NI/Revenue

33. Debt to capital
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Revenue/Average Working Capital
Total debt/(Total debt+Total shareholders equity)
Gross Profit/Revenue

34. Units in production
Begininng inventories+purchases-COGS
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total Debt/Total Asset
(EBIT+lease payments)/(interest payments+lease payments)

35. Net Profit Margin
(Cash+Marketable Securities)/Current Liabilities
NI/Revenue
365/receivables turnover
ROCE - ROA

36. CV sales
(market rate at issue)*(balance sheet value of the liability at beg period)
STD of Sales/Mean Sales
(NI-preferred dividends)/weighted average of common shares
NI/average total equity

37. Cash to ROE
EBIT/Revenue
Gross Profit/Revenue
Total Debt/Total shareholders' equity
CFO/average total equity

38. Return on equity
CFO/Total debt
NI/average total equity
CFO/dividends paid
CFO/operating income

39. CV NI
Cost-Salvage/useful Life
STD NI/Mean NI
(Cash+Marketable Securities)/Current Liabilities
(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)

40. Basic EPS
(NI-preferred dividends)/weighted average of common shares
365/receivables turnover
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/Net Revenue

41. Original DuPont:ROE
STD OI/mean OI
Total debt/(Total debt+Total shareholders equity)
(Cash+Marketable Securities)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]

42. Financial Leverage
(2/useful life)*(Cost-Depreciation)
STD NI/Mean NI
Average Total Asset/Average total equity
365/payable turnover ratio

43. Reinvestment
CFO/cash paid for long term asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/Total debt
EBIT/total asset

44. Current Ratio
STD of Sales/Mean Sales
CFO-fixed capital investment+net borrowing
CA/CL
Cash+Marketable Securities+ Receivables)/Current Liabilities

45. Operating return on assets
Annual Sales/Average receivables
CA/CL
EBIT/total asset
Total debt/(Total debt+Total shareholders equity)

46. Return on total capital
Annual Sales/Average receivables
NI/Revenue
ROCE - ROA
NI/total capital

47. DDB
CFO/Total debt
NI/total capital
(2/useful life)*(Cost-Depreciation)
Revenue/Average Total Assets

48. Investing and financing
CFO/cash outflows from investing and financing
COGS/Average Inventory
Total Debt/Total Asset
Annual Sales/Average receivables

49. Day of inventory on hand
(CFO-preferred dividends)/weighted average number of common shares
(NI-preferred dividends)/weighted average of common shares
365/Inventory turnover
(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)

50. Cash to income
[NI/sales][Sales/Assets][Assets/Equity]
NI/Revenue
CFO/operating income
CFO/cash long-term debt repayment