Questions from Financial Markets

Q: 1. What is DuPont analysis? a. A specialized

1. What is DuPont analysis? a. A specialized set of financial ratios. b. Financial ratio analysis for chemical firms. c. It separates profitability ratios into component parts. d. It relates chang...

Q: 1. Which of the following will the forecasted increase in assets

1. Which of the following will the forecasted increase in assets equal? a. Forecasted sales multiplied by the total asset turnover b. Forecasted sales divided by the total asset turnover c. Forecaste...

Q: 1. What does break-even analysis = estimate?

1. What does break-even analysis = estimate? a. The price where supply will equal demand b. The level of sales revenue that covers variable costs c. The level of sales revenue that covers fixed cos...

Q: 1. Working capital is made up of which of the following

1. Working capital is made up of which of the following? a. Current assets b. Fixed assets c. Machinery, trucks, and other equipment used to produce goods or offer services d. Cash and receivables...

Q: 1. What is the operating cycle? a. Usually

1. What is the operating cycle? a. Usually one year for a typical manufacturing firm b. The period of time to produce an item and place it in inventory c. Time to produce a good or service and coll...

Q: 1. If all else remains constant, how should we expect

1. If all else remains constant, how should we expect a firm’s levels of accounts receivable and accounts payable to be affected by an increase in sales? a. Balances in both accounts receivables and...

Q: 1. Which of the following best describes a cash budget?

1. Which of the following best describes a cash budget? a. A snapshot at a point in time of the firm’s cash balance b. A tool for forecasting cash flows c. Another name for the Statement of Cash Flo...

Q: 1. What are the four motives for holding cash?

1. What are the four motives for holding cash? a. Paying suppliers, paying workers, paying back loans, and paying taxes b. Transactions, caution, paying taxes, and paying debts c. Transaction, prec...

Q: 1. The first incorporated bank, the Bank of North America

1. The first incorporated bank, the Bank of North America, was created in a. 1492. b. 1782. c. 1816. d. 1863. 2. The First Bank of the United States was established in a. 1791. b. 1811. c. 18...

Q: 1. What is float? a. The difference between

1. What is float? a. The difference between cash inflows and cash outflows for a business. b. The difference between operating income and net income. c. The difference between accounts receivable a...