Financial Statement Analysis Quiz

A company's financial position would be best evaluated using the...

• Balance Sheet

• Income Statement

• Statement of Cash Flows

• Auditor's Report

What is another name for the debtor's turnover ratio?

• Debt to assets ratio

• Debt to equity ratio

• Accounts receivables turnover ratio

• Acid-test ratio

Which of the following is the correct calculation for OCF (operating cash flow)?

• A only

• B and C

• A and B

• All of the above.

Which of the following ratios assess the firm's ability to pay the debt interest and maturities as they become due?

• Current Ratio

• Times Interest earned

• Net Profit Margin

• Quick Ratio

True or False. It is possible for a company to be profitable but have negative cash flows.

• True

• False