FInancial Decision Making Q1
Financial Decision Making Quiz
Test your knowledge on financial decision-making with our comprehensive quiz designed for students, professionals, and enthusiasts alike. Dive into a variety of topics including assets, ratios, and cash flow management.
- Perfect for enhancing your financial literacy.
- Challenging questions to test your understanding.
- Learn while you play!
A current Asset is:
A item currently owned by the firm
Anitem that the firm expects to own within the next year
An Item currenlty owned by the firm that will convert to cash within the next 12 Months
The ammount of cash on hand the firm currently shows on its balance sheet
The market value of all items currently owned by the firm
______ Refers to the firm's dividend payment less any new equity raised
Operating cash flow
Capital spending
Net working capital
Cash flow to creditors
Cash flow to stockholders
Total assets are $1000, Fixed Assets are $700, Long-term debt is $250, and short term debt is $300. What is the ammount of net working Capital
$0
$50
$300
$650
$700
The financial ration measured as total assets minus total equity divided by total assets is the:
Total debt ratio
Equity multiplier
Debt-equity ratio
Current ratio
Times interest earned ratio
The financial ration measured as net income divided by sales is known as the firm's
Profit margin
Return on assets
Return on equity
Asset turnover
EBIT
An increase in total assets:
Means that net working capital is also increasing
Requires an investment in fixed assets
Means that shareholders' equity must also increase
Must be ofset by an equal increase in liabilities and shareholder's equity
Can only occur when a firm has positive net income
Earnings per share is equal to
Net income divided by the total number of shares outstanding
Net income divided by the par value of the common stock
Gross income multiplied by the par value of the common stock
Operating income divided by the par value of the common stock
Net income divided by total shareholder's equity
Under GAAP, a firm's assets are reported at
Market Value
Liquidation value
Intrinsic value
Cost
None of the above
Free cash flow is:
Without cost to the firm
Net income plus taxes
An increase in net working capital
Cash that the firm is free to distribute to creditors and stockholders
None of the above
The cash ratio is measured as:
Current assets divided by current liabilities
Current assets minus cash on hand, divided by current liabilities
Current liabilities plus current assets, divided by cash on hand
Cash on hand plus inventory, divided by current liabilities
Cahs on hand divided by current liabilities
The Quick ratio is measured as
Current inventory divided by current liabilities
Cash on hand plus current liabilities divided by current assets
Current liabilities divided by current assets plus inventory
Current assets minus inventory, divided by current liabilities
Current assets minus inventory minus current liabilities
Your firm has a debt-equity ratio of 40%, sales of $8000, Net income of $600, and total debt of $2400. What is the return on equity?
6.25%
7.50%
9.75%
10.00%
11.25%
The equity multiplier ratio is measured as total
Equity divided by total assets
Equity plus total debt
Assets minus total equity
Assets plus total equity, divided by total debt
Assets divided by total equity
______ refers to the cash flow that results from the firm's ongoing normal business activities
Cash flow from operating activities
Capital spending
Net working capital
Cash flow from assets
Cash flow to creditors
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