1)Financial Analyses include_________________________.

a.

Market analysis

b.

Preparing financial statements

c.

Horizontal analysis

d.

None of the these

2)If you want to learn more about the sources of cash receipts and also the purposes for which payments are made then you would use:

a.

Horizontal analysis

b.

Cash flow Analysis

c.

All of these

d.

Trend Analysis

3) The difference between the inflows and outflows of cash is the____________cash flows.

a.

Total

b.

Gross

c.

All of these

d.

Net

4)One of the following statement is not one of the goals of financial analysis:

a.

To examine the current liquidity

b.

To assess the ability of the firm to repay its debt

c.

To analyze the charges of the equipment used in the companys production.

d.

To evaluate the firms profitability

5)Muscat Nation Company reported the sales over the last 4 years as follow: RO 10,000 (2016), RO 10,100 (2017), 12,200 OMR (2018) and OMR 12,500 (2019) respectively, then we can conclude that the companys sales over last 4 years has experienced:

a.

Stable growth

b.

Huge increase

c.

None of these

d.

Continuous decrease

6)By using_________________, it is possible to assess the firms efficiency, liquidity, and financial performance.

a.

None of these

b.

Income statement

c.

Ratio analysis

d.

Cash flow statement

7)Dhofar Company report the sales over the last 4 years as follow: RO 90,000 (2016), RO 15,000 (2017), 10,000 OMR (2018) and 1,000 OMR (2019) respectively, then we can conclude that the companys sales in 2019 compared to sales in 2016 has witnessed:

a.

Significant decrease

b.

Decrease by 10%

c.

Slight decrease

d.

None of these

8)You are given the following information:Machinery = OMR 16,000,Sales on account = OMR 10,000,Cash = OMR 20,000,Equipment = OMR 14,000,Total current assets are______________OMR:

a.

20,000

b.

50,000

c.

30,000

d.

None of these

9)If total current assets are 1,500 RO and total current liabilities are 500 RO the current ratio is equal to:

a.

3 times

b.

33%

c.

6 times

d.

None of these

10)Usually when calculating and using the liquidity ratios you will needs the company:

a.

Cash flows statement

b.

None of these

c.

Income statement and statement of owners equity

d.

Income statement

11)The portion of a company's net profit that would be earned per share if all profits were paid out to shareholders is known as:

a.

Market Value per Share

b.

Earnings per share (EPS)

c.

None of these

d.

Dividend payout ratio

12)Which of the following ratios measure the firm's use of debt and ability to avoid financial distress in the future?

a.

Inventory turnover

b.

All of these

c.

Interest coverage ratio

d.

Return on assets

13)When analyzing dividends payout ratio, we should take into account:

a.

Companys competitors

b.

Companys products

c.

No of these

d.

Company top management

14)A company showed total sales = 120,000 OMR, average account receivable = 40,000 OMR, then account (trade) receivable turnover is equal to:

a.

3 times

b.

None of these

c.

2 times

d.

33%

15)The ______________measures the amount of debt used to finance the firm in relation to the amount of equity used:

a.

None of these

b.

Debt to equity ratio

c.

Interest coverage ratio

d.

Debt to asset ratio