Which of the following statements is not true? a) The return on shareholders’ funds can be calculated as profit after tax / total equity x 100 b) The dividend cover ratio can be calculated from the Income statement and the statement of cash flows and the answer will be the same c) The interest cover ratio can be calculated from the income statement and the statement of cash flows and the answer will be different d) The operating profit margin is also called the net profit margin

Which of the following statements is not true? a) The return on shareholders’ funds can be calculated as profit after tax / total equity x 100 b) The dividend cover ratio can be calculated from the Income statement and the statement of cash flows and the answer will be the same c) The interest cover ratio can be calculated from the income statement and the statement of cash flows and the answer will be different d) The operating profit margin is also called the net profit margin

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

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1. Which of the following is referred to as the Accounting Equation? Assets Liabilities + Equity Equity Liabilities + Assets Liabilities Assets + Equity Assets = Liabilities - Equity = 2. Which of the following make up the Finance Equation? (select all that apply) Revenues = Price x Volume Costs = Fixed + Variable Profit Revenues-Costs Income Sales - COGS
A measure of profitability analysis is a. times interest earned. b. cash flow per share. c. quick ratio. d. dividend payout ratio. would d be the right answer for this question?
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Does this solution work with the formula below?AFN = [((Total Assets/Sales)(∆Sales))-((Current Liabilities/Sales)(∆Sales))] - (Earnings After Tax - Dividends)
Which of the following is true? a. Return on Investment equals Margin divided by Average Operating Assets b. Turnover equals Sales divided by Stockholders Equity c. Margin equals Return on Investment divided by Turnover d. Return on Investment equals Margin divided by Turnover.
Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
what is ? 1)Dividend per share 2)Gross profit margin 3)price earing ratio 4)net profit margin 5)return to assets 6)earnings per share 7)quick ratio 8)dividend pay-out
Which of the following is an appropriate computation for return on investment? a. Sales divided by total assets b. Net income divided by total assets c. Net income divided by sales d. Sales divided by stockholders' equity would b be the right answer?
Which of the following is one measure of liquidity? a. Quick ratio b. Profit margin c. Times ineterst earned d. Debt-to-equity rati
Which of the following statements are true about the interest-burden ratio? Check all that apply: It can be expressed as EBIT/Interest Expense. If the company has no financial leverage, the interest-burden ratio will be equal to 0. A company with higher financial leverage will have a lower interest-burden ratio. If the company has no financial leverage, the interest-burden ratio will be equal to 1. It can be expressed as Net profits/Pretax profits.
Find 1. Total Debt Ratio 2. Debt to Equity Ratio 3. Net profit Margin Just practice and work check