Financial Statement Analysis and Valuation Online Test

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Financial Statement Analysis and Valuation

Description: Financial Statement Analysis and Valuation Quiz
Number of Questions: 15
Created by: Aliensbrain Bot
Tags: financial statement analysis valuation accounting

Which financial statement provides information about a company's assets, liabilities, and equity?

Income Statement
Balance Sheet
Cash Flow Statement
Statement of Retained Earnings

What is the primary purpose of the income statement?

To report a company's cash flows
To show a company's assets and liabilities
To measure a company's profitability
To disclose a company's investments

Which financial statement reports a company's cash receipts and disbursements?

Balance Sheet
Income Statement
Cash Flow Statement
Statement of Retained Earnings

What is the purpose of horizontal analysis?

To compare a company's financial statements to industry averages
To identify trends in a company's financial performance
To evaluate a company's liquidity
To assess a company's profitability

What is the purpose of vertical analysis?

To compare a company's financial statements to industry averages
To identify trends in a company's financial performance
To evaluate a company's liquidity
To assess a company's profitability

What is the DuPont analysis?

A method for evaluating a company's profitability
A technique for assessing a company's liquidity
A tool for measuring a company's solvency
A framework for analyzing a company's cash flow

What is the formula for calculating a company's gross profit margin?

(Net income / Sales) * 100
(Gross profit / Sales) * 100
(Operating income / Sales) * 100
(Net income + Interest expense) / Sales * 100

What is the formula for calculating a company's net profit margin?

(Net income / Sales) * 100
(Gross profit / Sales) * 100
(Operating income / Sales) * 100
(Net income + Interest expense) / Sales * 100

What is the formula for calculating a company's return on assets (ROA)?

(Net income / Average total assets) * 100
(Gross profit / Average total assets) * 100
(Operating income / Average total assets) * 100
(Net income + Interest expense) / Average total assets * 100

What is the formula for calculating a company's return on equity (ROE)?

(Net income / Average total assets) * 100
(Gross profit / Average total assets) * 100
(Operating income / Average total assets) * 100
(Net income / Average shareholders' equity) * 100

What is the formula for calculating a company's debt-to-equity ratio?

(Total debt / Total equity)
(Total debt / Shareholders' equity)
(Long-term debt / Shareholders' equity)
(Total debt + Shareholders' equity) / Total assets

What is the formula for calculating a company's current ratio?

(Current assets / Current liabilities)
(Total assets / Current liabilities)
(Long-term assets / Current liabilities)
(Total debt / Current liabilities)

What is the formula for calculating a company's quick ratio?

(Current assets - Inventory) / Current liabilities
(Total assets - Inventory) / Current liabilities
(Long-term assets - Inventory) / Current liabilities
(Total debt - Inventory) / Current liabilities

What is the formula for calculating a company's inventory turnover ratio?

(Cost of goods sold / Average inventory)
(Sales / Average inventory)
(Gross profit / Average inventory)
(Net income / Average inventory)

What is the formula for calculating a company's days sales outstanding (DSO)?

(Average accounts receivable / Sales) * 365
(Average accounts receivable / Cost of goods sold) * 365
(Average accounts receivable / Gross profit) * 365
(Average accounts receivable / Net income) * 365

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