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

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

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

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

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

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 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

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

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

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