Business Finance

It compares account balances and ratios over different time periods

• Horizontal Analysis

• Vertical Analysis

• Financial Ratio

• Financial statements

What ratio can be used to inefficient buying habbits?

• Inventory turnover

• Gross margin

• Debt ratio

• Average days

Which ratio or ratios measure the overall efficiency of the firm in managing its investment

in assets and in generating return to shareholders?

• Gross profit margin and net profit margin.

• Return on investment.

• Total asset turnover and operating profit margin.

• Return on investment and return on equity.

Which ratio or ratios measure the overall efficiency of the firm in managing its investment

in assets and in generating return to shareholders?

• Gross profit margin and net profit margin.

• Return on investment.

• Total asset turnover and operating profit margin.

• Return on investment and return on equity.

How would payments for taxes be classified?

• Operating outflow.

• Investing outflow.

• Operating inflow.

• Financing outflow.

Which profit margin measures the overall operating efficiency of the firm?

• Operating profit margin.

• Gross profit margin.

• Net profit margin.

• Return on equity.

Indicate which of the following current assets and current liabilities are operating accounts (O) and

thus included in the adjustment of net income to cash flow from operating activities

• Marketable securities

• Current portion of long-term debt

• Accounts payable

• Inventory

• Income taxes payable