36)

Based on Dow theory, when the financial analyst waits for the corrective movements, which could last for three weeks to three months then the market is said to be in__________________________.

a.

All of these

b.

The primary trend

c.

The short term trend

d.

The intermediate trends

37)

When analysist looks for trends & patterns in the data that indicate future price movement then he/she is using.

a.

All of these

b.

Technical analysis

c.

Economic analysis

d.

Industry analysis

38)

In a new industry where the technology as well as the product are relatively new and have not reached a state of perfection then it is in___________________________:

a.

All of these

b.

Stabilization stage

c.

Expansion stage

d.

Pioneering stage

39)

Based on the Altman Z-score, the lower the score:

a.

None of these

b.

The higher the chance of profit

c.

The lower the chance for bankruptcy

d.

The higher the chance of liquidity

40)

Altman Z-score takes into account a firms core activities including:

a.

Profitability

b.

Liquidity

c.

Solvency

d.

All of these

41)

The financial formula used by investors and creditors to estimate the probability of the company going bankrupt is called:

a.

liquidity ratio

b.

bankruptcy metric

c.

Altman Z-score

d.

None of these

42)

You are financial advisor and you know that the Altman z-score is above 10 then you would conclude that:

a.

Financial position of this company is good

b.

All of these

c.

Financial position of this company is very strong

d.

Financial position of this company is healthy

43)

Bank Muscat, Oman Mobile and Dhofar manufacturer come to you as financial analyst and ask you for your advice on Altman z-score usage then you would recommend that:

a.

Altman z-score should be used by Dhofar manufacturer and Oman Mobile

b.

Altman z-score should be used by Dhofar manufacturer only

c.

All of these

d.

Altman z-score should be used by Bank Muscat and Oman Mobile

44)

As financial analyst, K.M management asked for your judgement on the reliability of Altman Z-score, then you would state that:

a.

None of these

b.

Altman Z-score accounts directly for cash flows

c.

Altman Z- accounts for deferred revenue.

d.

the Z-Score has proved to be one of the most reliable predictors of bankruptcy

45)

According to Altman z-score, the ratio d = market cap / total liabilities, if the ratio drops below 1.0, then as financial advisor you would advise the investors that:

a.

market is saying that the firm is worth less than what it owes, or insolvent

b.

All of these

c.

This will not affect the market's confidence in the company as reflected in the stock price

d.

The market is saying that the firm is worth more than what it owes, or solvent.

46)

You are financial advisor and you know that the Altman z-score of XYZ company is below 1.8, then you would advise the investor that:

a.

The company is in the gray zone and you should not invest in it

b.

The company is in the safe zone and you should invest in it

c.

The company is in the safe zone and you should not invest in it

d.

The company is in the distress zone and you should not invest in it

47)

You are financial advisor and you know that the Altman z-score of XYZ company is more than 1.8, then you would advise the investor that:

a.

The company is in the safe zone and you should not invest in it.

b.

The company is in the gray zone and you should not invest in it

c.

The company is in the distress zone and you should not invest in it

d.

The company is in the safe zone and you should invest in it

48)

Al Sakina company is a private company, they asked you as financial analyst for your judgement on the reliability of Altman Z-score, then you would advise that:

a.

The interpretation of the score for private companies is the same as that of the public manufacturers.

b.

The interpretation of the score for private companies is significantly different from that of the public manufacturers.

c.

None of these

d.

The interpretation of the score for private companies is slightly different from that of the public manufacturers

49)

Common size analysis are also called_____________

a.

Profitability analysis

b.

Financial position analysis

c.

Vertical analysis

d.

Horizontal analysis

50)

Analysis of financial statements is a systematic process of analyzing the financial information in order to make__________________________.

a.

Operational decision

b.

All of these

c.

Economic decision

d.

Human resources decision