1. Accounts payable are categorized as Financing Liabilities. A.True B.False 2. ______ the ultimate bottom line income that also includes both the unrealized gains and losses. A. Core Income B. Comprehensive Income C. Net Income D. Gross Income 3. Which of the Following is a characteristic of Permanent Income? A. It is also called sustainable income or recurring income B. It reflects a long-term focus of the company. C. It equals the stable average income that a company is expected to earn over its lifetime D. All the Above 4. Sales forecasts are a function of _____ A.Net increase or decrease in cash on the cash flow statment is derived from one of the follwing equation B. Cash from operations - cash from investing - cash from financing C. Cash from operations + cash from investing - cash from financing D. Cash from operations + cash from investing + cash from financing E. Cash from operations - cash from investing + cash from financing 5. Cash from operations is derived from ____ A. Net Earnings + Depreciation & Amortization - Changes in working capital B. Net Earnings - Depreciation & Amortization - Changes in working capital C. Net Earnings +Depreciation & Amortization + Changes in working capital D. Operating profit - Depreciation & Amortization + Changes in working capital 6. Which of the following ratio is used to ascertain the revenue growth rate A.2021 Revenue -2022 Revenue x 365 B.2021 Revenue -2022 Revenue /365 C.2021 Revenue /2022 Revenue -1 D.2021 Revenue /2022 Revenue -365 7. Accounts Receivable Days is a function of ____ A. Accounts receivable /Revenue * 365 B. Accounts receivable /Cost of sales * 365 C. Cost of goods sold /Inventory * 365 D. Revenue/Cost of goods sold * 365 8. To arrived at current year capital expenditure, finance analyst must____ A. Minus last year's Property plant and equipment from Current year's figure and plus depreciation and amortization of the current year B. Minus last year's Property plant and equipment from Current year's figure and minus depreciation and amortization of the current year C.Minus Current year's Property plant and equipment from last year's figure and minus depreciation and amortization of the current year D.Minus Current year's Property plant and equipment from last year's figure and plus depreciation and amortization of the current year 9. Working capital comprises of _____ A. Accounts payable, Accounts Receivable and Inventory B. Accounts Receivable, Inventory and prepayment C. Accounts Payable, loan and Debt D. Net earnings, Accounts Receivable and Inventory 10. Return on Invested Capital is applied in three key areas of analysis EXCEPT; A. Measuring managerial effectiveness B. Measuring profitability C. All of the options D. A measure for planning and control 11. Which of the following statements is FALSE about the Profit Margin? A. Declining Gross Profit Margins may indicate that competition has increased B. It reflects the gross profit as a percent of sales C. It reflects company's ability to increase or maintain selling price D. All of the options 12. Which of the following statements is FALSE about Returns on Assets? A. Asset turnover is the ratio of operating assets to sales B. None of the options C. Asset turnover is a relevant measure of the amount of sales generated D. Asset turnover measures the intensity with which companies utilize assets 13. Which one of these is NOT a purpose of ROI in Financial Statement Analysis? A. None of the options B. ROI allows comparisons with alternative investment opportunities C. ROI relates income, or other performance measures, to a company's level and source of financing D. Riskier investments are expected to yield a higher ROI which is important for analysis 14. The liquidity ratio measures current assets to current liabilities. A.True B.False 15. Which of the following is NOT a feature of Debt Financing? A. It must be repaid with interest B. None of the Options C. It represents ownership in a company D. It is recorded as Liabilities on the Balance Sheet 16. Which of the following is FALSE about analyzing a capital structure? A. There exist a relationship between risk and return in a capital structure B. A company can increase risks (and potential returns) of equity holders by increasing leverage C. Debt and Equity are subsitute strcuture D. Substitution of debt for equity yields a riskier capital structure 17. The amount of debt financing in a company's capital structure is terms as _______ A. Liquidity B. Financial leverage C. None of the Options D. Solvency 18. A company's long-run financial viability and its ability to cover long-term obligations is describe as _______ A. None of the above B. Financial leverage C. Solvency D. Liquidity 19. Net income - Preference Div / Ave. Common shares = A.All of the above B.Return on Preference shares C.Return on common Equity D.Net income on share contribution 20. A reduction in the value of investment securities is known as ___ A. Return surplus B. Losses C. Gains D. Return deficit 21.A measure that excludes all nonrecurring and unusual items that are typically reported as separate line items on the income statement is called ___ A. Core income B. Non-balance sheet item C. Unreported income D. Operating income 22. The three key areas of analysis where ROI is applied are ___ A. Profitability, Managerial effectiveness and planning and controlling B. All of the Options C. Managerial Effectiveness, Planning and Controlling D. Controlling, profitability and managerial accounting 23. NOPAT / NOA = A.RNOA B.RNOPAT C.NOAR D.NOPATR 24. Income / Invested capital = A. Return on Capital B. Return on Asset C. Earnings per capital investment D. Earnings per share 25. Receivable turnover Reflects how many times inventories are collected on average A.True B.False 26. Mention Three (3) Reasons for Prospective valuation 27. Highlight the difference between Revenue and Gain 28. Briefly Explain Interest-bearing liabilities 29. Briefly explain Recurring versus non-recurring 30. Give Two (2) reasons for Post retirement benefits analysis