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Posted on Oct 07, 2024

: Equity multiplier is an indicator of how much ___ a firm is using. Select one: A. total assets B. total debts C. total equities

: Equity multiplier is an indicator of how much ___ a firm is using.

Select one:

total assets

total debts

total equities

current liabilities

The objectives of preparing the income statement are as follows EXCEPT

Select one:

to show how much corporate taxes will be paid.

to provide information needed for financial planning.

to determine the net profit or loss of the enterprise.

to estimate the cash flow from assets.

Which of the following is a noncash item?

Select one:

Expenses that do not consume cash.

Sales that are made using store credit.

Ownership of intangible assets such as patents.

Inventory items purchased using credit.

: La Corter's Dome has total assets of RM5,820, total debt of RM2,760 and total equity of RM3,652.90. Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. In the following year, the firms projected sales growth is 21% and its projected assets is RM7,042.20. What is the amount of the external financing needed?

Select one:

RM1,048.30

RM629.30

RM469.30

RM611.30

Maria Sdn Bhd, had taxable income of RM325,850 for the year. The company's marginal tax rate was 26 percent and its average tax rate was 21 percent. How much did the company have to pay in taxes for the year?

Select one:

RM45,335.21

RM53,235.45

RM32,356.34

RM68,428.50

Miller's has a return on asset of 0.262, a return on equity of 0.168 and a dividend payout ratio of 15 percent. The total asset turnover is 1.6 and the debt-equity ratio is .4. What is the sustainable rate of growth?

Select one:

16.80%

16.66%

9.26%

9.60%

When conducting financial ratio analysis, one must ensure that ___.

Select one:

the overall performance of a firm is not judged on a single ratio

interest rate is not taken into account

different accounting procedures are used

ratios being compared should be calculated using financial statements dated at different points in time during the year

Pro forma statements___.

Select one:

must assume that no dividends will be paid.

are limited to a balance sheet and income statement.

are projections, not guarantees.

must assume that no new equity is issued.

: An income statement_____.

Select one:

measures the performance of the firm describing how revenue and expenses were generated over some period of time.

is a snapshot of the firms performance explaining the balance in revenue and expense accounts at some specific date.

measures the operating performance of the firm at some specific date.

describes exactly where and how to raise money to pay the interest and dividends.

Which of the following sources of funds is derived from the income statement?

Select one:

funds provided by the sale of assets .

funds provided by borrowing.

funds provided by operations.

funds provided by issuing common or preferred stock.

: In evaluating a firms financial performance, which of the following is the best to be compared with its current financial ratios?

Select one:

The projected financial ratios

The economic situation.

The firms current share price.

The firms historical ratios.

: Which of the following financial manager activities is most likely to result in an agency problem?

Select one:

Refusing to reduce selling prices if doing so will diminish net earnings.

Refusing to expand the company if doing so reduces the stock value.

Increasing current earnings while lowering the company's equity worth is a bad idea.

Refusing to borrow money when doing so will result in the company losing money.

[In a typical corporate organisational structure, which of the following appropriately portrays the upward chain of command?

Select one:

The chief operations officer reports to the vice president of production.

The chief executive officer reports to the president.

The controller reports to the chief financial officer.

D. The vice president of finance reports to the chairman of the board.

: Reduction of ___ will result to lower quick ratio without affecting the cash ratio, other things being equal.

Select one:

inventory

accounts payable

accounts receivable

cash

: Based on their ownership interest, which of the following individuals have unlimited liability for a firm's debts?

Select one:

Every shareholder

General partners only

Both sole proprietors and general partners

Sole proprietorships

Sales grow faster than the EBIT will result to a ___.

Select one:

higher P/E ratio.

lower net income

lower operating profit margin

higher operating profit margin

[5:46 am, 20/05/2022] Abdoulrhman Alamoudi: To perform common-size analysis of financial statements, the expenses in the income statement must be expressed as percentage of ___, and the assets in the statement of financial position must be expressed as percentage of ___.

Select one:

total assets; total assets

sales; sales

sales; total assets

net income; total assets

[5:47 am, 20/05/2022] Abdoulrhman Alamoudi: The main objective of financial statement analysis for an investor is_____

Select one:

to determine the stability of earnings.

to determine if the firm is risky.

to determine changes necessary to improve future performance.

to use the current earnings to estimate the companys future earnings stream.

[5:47 am, 20/05/2022] Abdoulrhman Alamoudi: Which of the following terms is often used to describe a company's long-term investment management?

Select one:

A. Working capital management

Capital structure

Capital budgeting

Agency cost analysis

[5:47 am, 20/05/2022] Abdoulrhman Alamoudi: Which of the following questions are appropriate to address during the financial planning process?

I. Should the firm merge with a competitor?

II. Should additional shares of stock be sold?

III. Should a particular division be sold?

IV. Should a new product be introduced?

Select one:

I, II, III, and IV

I only

I, II, and III only

II and III only

[5:47 am, 20/05/2022] Abdoulrhman Alamoudi: What are the financial statements?

Select one:

Statements that describe how firms manage its day-to-day activities that ensure the firms have sufficient resources to run the business.

Statements that identify how a firm obtains and manages the long-term financing needed to support its long-term investments.

Statements that summarize the financial standing and performance of the business.

Statements that explain the process of planning and managing a firms long-term investments.

[5:47 am, 20/05/2022] Abdoulrhman Alamoudi: The depreciation deduction is another application of the ______ principle in accounting.

Select one:

accruals

matching

cost

conservatism

[5:48 am, 20/05/2022] Abdoulrhman Alamoudi: Net Income at the end of this year was RM55,800 and the firms dividend pay-out ratio was 30%. What are the retained earnings for the year?

Select one:

RM188,830

RM211,150

RM16,740

RM39,060

[5:48 am, 20/05/2022] Abdoulrhman Alamoudi: Which one of the following statements related to corporate income taxes is CORRECT?

Select one:

The marginal tax rate will always exceed a corporations average tax rate.

Above a certain level, if the corporation earns additional income, it will be taxed at a higher rate.

A corporation's marginal tax rate must be equal to or lower than its average tax rate.

Corporations pay taxes as per the corporate tax rate set by the tax authorities.

[5:48 am, 20/05/2022] Abdoulrhman Alamoudi: Tetap Teguh is currently operating at 78% capacity. Currently, total assets are RM49,800 and current sales are RM56,300. What is the firms full capacity sales?

Select one:

RM72,179.50

RM82,758.00

RM63,846.15

RM43,914.00

[5:48 am, 20/05/2022] Abdoulrhman Alamoudi: Which of the following issues will lead to problems when comparing the financial statements of two separate entities?

Select one:

Using standardised accounting methods.

Having geographically similar operations.

Identical seasonal peaks.

Being conglomerates with unrelated lines of business

[5:49 am, 20/05/2022] Abdoulrhman Alamoudi: A higher days sales outstanding ratio indicates that ___, other things being equal.

Select one:

the company sells more on credit

the company collects its accounts receivable faster

the company has a higher percentage of cash to credit sales

the company has a cash flow disadvantage