QUESTION 1 The Community of Washington Green calculates a risk exposure factor as (external revenue / own revenue sources). They see the ratio falling over time. This implies: they are generating a higher turnover rate on assets. they rely less and less on external sources of funds. they are increasingly reliant on government aid. they obviously have a high debt burden. 1 points

QUESTION 2 A measure of liquidity auditor's report. program services ratio. total asset turnover. quick ratio. 1 points

QUESTION 3 Which of the following would you probably NOT want to be relatively high compared to your peer group? total asset turnover return on assets profit margin average collection period 1 points

QUESTION 4 You want to know how much a particular community owes per capita. You need basic financial statements. management's discussion and analysis required supplementary information. debt burden. 1 points

QUESTION 5 Which ONE of the following contains market information as well as information from the financial statements? current ratio. debt ratio. return on net assets. price/earnings ratio. 1 points

QUESTION 6 The not-for-profit equivalent of profit margin return on assets. operating margin. program services ratio. total margin. 1 points

QUESTION 7 All items on a common sized balance sheet are measured as a percentage of assets revenue net assets. debt 1 points

QUESTION 8 An Inventory Turnover that is twice the industry average probably indicates excessive inventory. is typical for most for-profit corporations. probably indicates some risk of running out of stock. would tend to reduce profitability. 1 points

QUESTION 9 If your Profit Margin is 5%, Debt Ratio is .4 and Total Asset Turnover is 3, then your Return on Equity is _________. 25% 15% 9% 6% 1 points

QUESTION 10 An Average Collection Period that is twice the industry average indicates: they have difficulty in collecting from customers. they are paying their bills slower than other companies. the organization is collecting twice as much as their peers. they collect much faster than their peers. 1 points

QUESTION 11 The Generic 501(c)(3) Fund had revenue from contributions = $500,000, administrative expense = $125,000 program service expenses = $360,000 paid interest of $10,000 and had an increase in net assets = $5,000. They have cash = $30,000 accounts receivable = $20,000 inventory = $50,000 net fixed assets = $100,000 accounts payable = $22,000 long-term debt = $88,000 and net assets = $90,000. The Debt Ratio is _________. .44 .55 .98 1.22 1 points

QUESTION 12 If the Profit Margin is 10%, the Debt Ratio is .5 and the Total Asset Turnover is 4, then the Return on Assets is: 2.5 4. 40% 80% 1 points

QUESTION 13 The Generic 501(c)(3) Fund had revenue from contributions = $500,000, administrative expense = $125,000 program service expenses = $360,000 paid interest of $10,000 and had an increase in net assets = $5,000. They have cash = $30,000 accounts receivable = $20,000 inventory = $50,000 net fixed assets = $100,000 accounts payable = $22,000 long-term debt = $88,000 and net assets = $90,000. The Current Ratio is _________. 4.54 3.64 1.36 .91 1 points

QUESTION 14 Current assets are $5,000 including inventory of $2,000. Current liabilities are $1,000. The Quick Ratio is: 7. 5. 3. .4 1 points

QUESTION 15 The Generic 501(c)(3) Fund had revenue from contributions = $500,000, administrative expense = $125,000 program service expenses = $360,000 paid interest of $10,000 and had an increase in net assets = $5,000. They have cash = $30,000 accounts receivable = $20,000 inventory = $50,000 net fixed assets = $100,000 accounts payable = $22,000 long-term debt = $88,000 and net assets = $90,000. Total Asset Turnover is ___________. .05 1.8 2.5 5 1 points

QUESTION 16 The Generic 501(c)(3) Fund had revenue from contributions = $500,000, administrative expense = $125,000 program service expenses = $360,000 paid interest of $10,000 and had an increase in net assets = $5,000. They have cash = $30,000 accounts receivable = $20,000 inventory = $50,000 net fixed assets = $100,000 accounts payable = $22,000 long-term debt = $88,000 and net assets = $90,000. The Program Services Ratio is ___________. 72.7% 72.% 96.% 257.% 1 points

QUESTION 17 Testco had revenue = $1,000,000 cost of goods sold = $600,000 paid interest of $100,000 and paid $150,000 of tax. They have cash = $300,000 accounts receivable = $120,000 inventory = $80,000 net fixed assets = $2,500,000 accounts payable = $200,000 long-term debt = $800,000 and equity = $2,000,000. Return on Assets is: 5% 7.5% 15% 33.3% 1 points

QUESTION 18 The Times Interest Earned ratio is a measure of activity leverage profitability liquidity 1 points

QUESTION 19 A ratio of Score / Exam is a measure of: profitability activity leverage liquidity 1 points

QUESTION 20 Which of the following is used to find a peer group? Trend analysis SIC codes Quartiles Extrapolation 1 points

QUESTION 21 Audits are NOT intended to provide a fair representation of an organizations financial position. review every transaction. ensure financial statements are free of material misstatements ensure compliance with GAAP. 1 points

QUESTION 22 A company with a high return on equity but a low return on assets and a high total asset turnover must have a low Current Ratio. a low Profit Margin and a low Debt Ratio. a low Profit Margin and a high Debt Ratio. a high Profit Margin and a low Debt Ratio. 1 points

QUESTION 23 If sales are $1,000, assets are $10,000 and NPAT is $60, then the Profit Margin is: 16.67 6. 6% .6% 1 points

QUESTION 24 As the Profit Margin increases, return on equity increases. return on assets decreases. the Debt Ratio increases. liquidity decreases. 1 points

QUESTION 25 As the Debt Ratio increases, Return on Assets increases. Total Asset Turnover increases. Profit Margin increases. Times Interest Earned decreases.