# analysis of financial statement

MCQsQuestion.com has 9 Question/Answers about Topic analysis of financial statement

## Price per share is $30 and an earning per share is $3.5 then price for earning ratio would be

- A. 8.57 times
- B. 8.57%
- C. 0.11 times
- D. 11%
- Correct Answer: Option A

## Price per ratio is divided by cash flow per share ratio which is used for calculating

- A. dividend to stock ratio
- B. sales to growth ratio
- C. cash flow to price ratio
- D. price to cash flow ratio
- Correct Answer: Option D

## Total assets divided common equity is a formula uses for calculating

- A. equity multiplier
- B. graphical multiplier
- C. turnover multiplier
- D. stock multiplier
- Correct Answer: Option A

## An equation in which total assets are multiplied to profit margin is classified as

- A. du DuPont equation
- B. turnover equation
- C. preference equation
- D. common equation
- Correct Answer: Option A

## Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be

- A. 16.75%
- B. 2.68%
- C. 0.37%
- D. 9.20%
- Correct Answer: Option A

## A technique uses in comparative analysis of financial statement is

- A. graphical analysis
- B. preference analysis
- C. common size analysis
- D. returning analysis
- Correct Answer: Option C

## Profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be

- A. 26.73%
- B. 26.73 times
- C. 9.40%
- D. 0.4 times
- Correct Answer: Option A

## Company low earning power and high interest cost cause financial changes which have

- A. high return on equity
- B. high return on assets
- C. low return on assets
- D. low return on equity
- Correct Answer: Option B

## If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be

- A. 2.50%
- B. 8.10%
- C. 0.40%
- D. 4 times
- Correct Answer: Option B