WorksheetsABM- Assessment
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
It is a key financial metric used to determine the sustainability of a company's dividend payments.
a)
Pay out ratio
b)
Plow back ratio
c)
Dividend
2.
It is a measure of what size a company's dividends should be
a)
Payout ratio
b)
Dividend
c)
Current ratio
3.
It is the percentage of income that a company reinvests into its own operations. In other words, it is the percentage of net income that a company does not payout as dividends.
a)
Plow-back ratio
b)
Payout ratio
c)
Dividend
4.
It is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
a)
Current ratio
b)
Quick ratio
c)
Debt ratio
5.
The current ratio is calculated by dividing current assets by current liabilities.
a)
True
b)
False
6.
The current ratio helps investors and creditors understand the liquidity of a company and how easily that company will be able to pay off its current liabilities.
a)
True
b)
False
7.
The equity ratio highlights two important financial concepts of a solvent and sustainable business.
a)
True
b)
False
8.
The equity ratio is calculated by dividing total equity by total assets.
a)
True
b)
False
9.
The gross profit ratio is important because it shows management and investors how profitable the core business activities are without taking into consideration the indirect costs.
a)
True
b)
False
10.
The gross profit formula is calculated by subtracting total cost of goods sold from total sales.
a)
True
b)
False
11.
It is also called net profit, is a calculation that measures the amount of total revenues that exceed total expenses.
a)
Net Income
b)
Gross profit
c)
Working capital
12.
The net income formula is calculated by subtracting total expenses from total revenues.
a)
True
b)
False
13.
The asset turnover ratio is an efficiency ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.
a)
True
b)
False
14.
It is a financial or capital budgeting ratio that calculates the number of days required for an investment to produce cash flows equal to the original investment cost.
a)
Payback period
b)
Financial
c)
Gross margin
15.
The cash conversion cycle is a cash flow calculation that attempts to measure the time it takes a company to convert its investment in inventory and other resource inputs into cash.
a)
True
b)
False
16.
The cash conversion cycle is calculated by adding the days inventory outstanding to the days sales outstanding and subtracting the days payable outstanding.
a)
True
b)
False
17.
It is a liquidity calculation that measures a company’s ability to pay off its current liabilities with current assets
a)
Net working capital
b)
Gross margin
c)
Gross profit
18.
Operating income, often referred to as EBIT or earnings before interest and taxes, is a profitability formula that calculates a company’s profits derived from operations.
a)
True
b)
False
19.
Debt ratio is a solvency ratio that measures a firm's total liabilities as a percentage of its total assets.
a)
True
b)
False
20.
It is a solvency ratio that measures a firm's total liabilities as a percentage of its total assets.
a)
Debt ratio
b)
Current ratio
c)
Quick ratio
100 %
