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. Leverage
ROCE - ROA
CA/CL
(Cash+Marketable Securities)/Current Liabilities
Gross Profit/Revenue

2. Fixed charged coverage
Revenue/Average Fixed Assets
Begininng inventories+purchases-COGS
Revenue/Average Working Capital
(EBIT+lease payments)/(interest payments+lease payments)

3. Inventory turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
COGS/Average Inventory
CFO/average total assets
STD NI/Mean NI

4. Straight Line depreciation
STD of Sales/Mean Sales
STD OI/mean OI
NI/average total equity
Cost-Salvage/useful Life

5. Cash Conversion Cycle
STD of Sales/Mean Sales
Taxes payable+Change in DTL - Change in DTA
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

6. Original DuPont:ROE
CFO/Net Revenue
Annual Sales/Average receivables
COGS/Average Inventory
[NI/sales][Sales/Assets][Assets/Equity]

7. DDB
365/Inventory turnover
(2/useful life)*(Cost-Depreciation)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/cash long-term debt repayment

8. FCFF
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
(CFO-preferred dividends)/weighted average number of common shares
Total Debt/Total shareholders' equity

9. Debt to equity

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

10. Cash Ratio
CFO/cash long-term debt repayment
CFO/dividends paid
(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)

11. Dividend payment
Taxes payable+Change in DTL - Change in DTA
STD of Sales/Mean Sales
Revenue/Average Working Capital
CFO/dividends paid

12. Debt to Asset
CFO/average total equity
STD of Sales/Mean Sales
Total Debt/Total Asset
365/payable turnover ratio

13. Fixed assets turnover
CFO/Total debt
Revenue/Average Fixed Assets
EBT/Revenue
CFO/operating income

14. Diluted EPS
ROCE - ROA
STD NI/Mean NI
(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

15. Basic EPS
CFO/cash long-term debt repayment
NI/Revenue
Average Total Asset/Average total equity
(NI-preferred dividends)/weighted average of common shares

16. Net Profit Margin
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/cash outflows from investing and financing
NI/Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

17. Cash to ROE
CFO/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Purchases/Average trade payable
365/Inventory turnover

18. Operating return on assets
Revenue/Average Fixed Assets
ROCE - ROA
EBIT/total asset
CFO/average total assets

19. Return on common equity
Revenue/Average Fixed Assets
NI available to common/average common equity
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

20. Ending inventories
CFO/cash outflows from investing and financing
Revenue/Average Total Assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Begininng inventories+purchases-COGS

21. Cash to ROA
CFO/cash outflows from investing and financing
(NI-preferred dividends)/weighted average of common shares
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/average total assets

22. CF per share
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO-preferred dividends)/weighted average number of common shares
365/Inventory turnover
Taxes payable+Change in DTL - Change in DTA

23. Days of sales outstanding
[NI/sales][Sales/Assets][Assets/Equity]
365/receivables turnover
Revenue/Average Total Assets
CFO/Net Revenue

24. Quick Ratio
Begininng inventories+purchases-COGS
NI available to common/average common equity
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/Total debt

25. Cash to income
Revenue/Average Total Assets
CFO/operating income
[NI/sales][Sales/Assets][Assets/Equity]
Purchases/Average trade payable

26. CV sales
EBIT/Revenue
CFO/Net Revenue
NI available to common/average common equity
STD of Sales/Mean Sales

27. Gross Profit Margin
Gross Profit/Revenue
EBT/Revenue
NI available to common/average common equity
(market rate at issue)*(balance sheet value of the liability at beg period)

28. Number of days of payable
NI/average total equity
365/payable turnover ratio
CFO/average total assets
Annual Sales/Average receivables

29. Pretax Income
(Cash+Marketable Securities)/Current Liabilities
EBT/Revenue
Begininng inventories+purchases-COGS
365/receivables turnover

30. Income tax expense
Total Debt/Total Asset
Cost-Salvage/useful Life
Taxes payable+Change in DTL - Change in DTA
Gross Profit/Revenue

31. Investing and financing
Total debt/(Total debt+Total shareholders equity)
CFO/cash paid for long term asset
Total Debt/Total shareholders' equity
CFO/cash outflows from investing and financing

32. Return on total capital
(2/useful life)*(Cost-Depreciation)
Annual Sales/Average receivables
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/total capital

33. Total asset turnover
Revenue/Average Total Assets
STD of Sales/Mean Sales
Cost-Salvage/useful Life
Revenue/Average Fixed Assets

34. CF to Revenue
CFO/cash outflows from investing and financing
365/payable turnover ratio
Total Debt/Total Asset
CFO/Net Revenue

35. Units in production
CFO/operating income
STD of Sales/Mean Sales
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO-fixed capital investment+net borrowing

36. Return on 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 OI/mean OI
NI/average total equity
Gross Profit/Revenue

37. Operating Profit Margin
EBIT/total asset
EBIT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
365/payable turnover ratio

38. CV Operating Income
STD NI/Mean NI
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD OI/mean OI
CFO/cash long-term debt repayment

39. Debt coverage
365/Inventory turnover
Revenue/Average Working Capital
Average Total Asset/Average total equity
CFO/Total debt

40. CV NI
Total Debt/Total Asset
STD of Sales/Mean Sales
(2/useful life)*(Cost-Depreciation)
STD NI/Mean NI

41. Payable Turnover
Purchases/Average trade payable
EBT/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)
365/Inventory turnover

42. Working Capital Turnover
Purchases/Average trade payable
(EBIT+lease payments)/(interest payments+lease payments)
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Working Capital

43. Receivables Turnover
Total debt/(Total debt+Total shareholders equity)
Annual Sales/Average receivables
365/Inventory turnover
(CFO-preferred dividends)/weighted average number of common shares

44. Current Ratio
NI/Revenue
CA/CL
(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 OI/mean OI

45. FCFE
Annual Sales/Average receivables
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO-fixed capital investment+net borrowing
CFO/cash outflows from investing and financing

46. Reinvestment
EBT/Revenue
365/payable turnover ratio
Cost-Salvage/useful Life
CFO/cash paid for long term asset

47. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Begininng inventories+purchases-COGS
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/dividends paid

48. Debt to capital
NI/total capital
CFO/dividends paid
CFO/Total debt
Total debt/(Total debt+Total shareholders equity)

49. Return on Asset
Total debt/(Total debt+Total shareholders equity)
CA/CL
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

50. Interest expense
COGS/Average Inventory
Revenue/Average Total Assets
CFO/dividends paid
(market rate at issue)*(balance sheet value of the liability at beg period)