Question 1

Which of the following is NOT potential users of the financial statements of a public company for making financial decisions?Choose one correct answer.

(a)Suppliers

(b)Investment Analysts

(c)Educators

(d)Competitors

Question 2

Which of the following is NOT highlighted when performing a Horizontal Analysis on the Financial Statements of a company?Choose one correct answer.

(a)Highlights increase/decreases in share price; indicating investors' valuation of the company(b)Highlights the increase/decrease in expenses; this raise possible issues with company's spending or fraudulent transactions

(c)Highlights increases/decreases in income; this raise possible issue with Pricing and Product Differentiation Strategies

(d)Highlights increase/decreases in assets; indicating how company's capital have been invested

Question 3

Vertical Analysis is a useful analysis of financial performance as it removes the impact of inflation.(a)True (b)False

Question 4

Which one of the following category of Financial Ratios does NOT indicate a company's ability to repay and service debts and borrowings?

(a)Profitability Ratios

(b)Liquidity Ratios

(c)Efficiency Ratios

(d)Solvency Ratios

Question 5

Which one of the following ratio indicates a company's ability to repay immediate borrowings using cash or near-cash?

(a)Gross Profit Margin

(b)Acid Test Ratio

(c)Asset Turnover Ratio

(d)Trade Payables Payment Period

Question 6

Which one of the following stakeholder would be most interested in the Return on Equity (ROE)?(a)Lenders

(b)Customers

(c)Shareholders

(d)Employees

Question 7

A company with low Interest Cover would give potential lenders more confident providing loans to the company.(a)True (b)False

Question 8

Which one of the following ratio gives an indication of the market's confidence in the shares of a company?

(a)Price to Earnings Ratio

(b)Return of Equity Ratio

(c)Dividend Yield Ratio

(d)Asset Turnover Ratio

Question 9

Which of the Balance Scorecard perspective focuses on training employees?

(a)Financial

(b)Learning and Growth

(c)Internal Business Process

(d)Customer

Question 10

Which of the Balance Scorecard perspective focuses on increasing market share?

(a)Learning and Growth

(b)Financial

(c)Internal Business Process

(d)Customer