${?}_{{?}_{{?}_{?}}\text{a}\text{n}\text{a}\text{l}\text{y}\text{s}\text{i}\text{s}is\text{d}\text{o}\text{n}\text{e}to\text{a}\text{n}\text{a}\text{l}\text{y}\text{z}\text{e}\text{a}\text{f}\text{i}\text{r}\text{m}s\text{p}\text{e}\text{r}\text{f}\text{o}\text{r}\text{m}\text{a}\text{n}\text{c}\text{e}\text{o}\text{v}\text{e}\text{r}\text{t}\text{i}\text{m}\text{e}\text{,}\text{w}\text{h}\text{e}\text{r}\text{e}\text{a}\text{s}{?}_{(}{)}_{{?}_{?}}\text{a}\text{n}\text{a}\text{l}\text{y}\text{s}\text{i}\text{s}is\text{d}\text{o}\text{n}\text{e}to\text{c}\text{o}\text{m}\text{p}\text{a}\text{r}\text{e}\text{a}\text{f}\text{i}\text{r}\text{m}s\text{p}\text{e}\text{r}\text{f}\text{o}\text{r}\text{m}\text{a}\text{n}\text{c}\text{e}\text{r}\text{e}\text{l}\text{a}\text{t}\text{i}\text{v}\text{e}to\text{a}\text{s}\text{p}\text{e}\text{c}\text{i}\text{f}\text{i}\text{c}\text{c}\text{o}\text{m}\text{p}\text{e}\text{t}\text{i}\text{t}\text{o}\text{r}\text{.}}$

${?}_{{?}_{?}}{?}_a$nalysis $is$ done $to$ analyze a firm$s$ performance over time, whereas ${?}_{(}{)}_{{?}_{?}}$ analysis $is$ done $to$ compare a firm$s$ performance relative $to$ a specific competitor.

Trend; industry

Industry; trend

Trend; benchmark

Benchmark; trend

Industry; benchmark

Benchmark; industry

Question $at$ position $2$

$2$

$1$ point

Question $at$ position $2$

The Quick Ratio $is$ the most commonly used measure $of$ short$-$term solvency.

The Quick Ratio $is$ the most commonly used measure $of$ short$-$term solvency.

True

False

Question $at$ position $3$

$3$

$1$ point

Question $at$ position $3$

$In$ the $DLeon$ case, the company$s$ current ratio $is$ forecasted $tobe2\mathrm{.}34x.$

$In$ the $DLeon$ case, the company$s$ current ratio $is$ forecasted $tobe2\mathrm{.}34x.$

True

False

Question $at$ position $4$

$4$

$1$ point

Question $at$ position $4$

$DLeons$ inventory turnover $is{?}_{(}{)}_t$han the industry average, indicating that $it$ may have:

$DLeons$ inventory turnover $is{?}_{(}{)}_t$han the industry average, indicating that $it$ may have:

poor production control

good production control

old $or$ obsolete inventory

accurate sales forecasts

Question $at$ position $5$

$5$

$1$ point

Question $at$ position $5$

$DLeons$ FATO and TATO ratios indicate that:

$DLeons$ FATO and TATO ratios indicate that:

its FATO $is$ better than industry average

its TATO $is$ better than industry average

its asset turnover problems are caused $by$ current assets

its asset turnover problems are caused $by$ fixed assets

$itis$ not $as$ efficient $as$ the industry $at$ utilizing all $of$ its assets $to$ generate sales

Question $at$ position $6$

$6$

$1$ point

Question $at$ position $6$

A firm having debt $is$ considered a bad thing.

A firm having debt $is$ considered a bad thing.

True

False

Question $at$ position $7$

$7$

$1$ point

Question $at$ position $7$

$DLeons$ TLTA and debt$-to-$capital ratios are both forecasted $tobe$ lower than average and its tie ratio $is$ projected $tobe$ higher than average, all $of$ which suggest there may $be$ room $to$ take $on$ more debt.

$DLeons$ TLTA and debt$-to-$capital ratios are both forecasted $tobe$ lower than average and its tie ratio $is$ projected $tobe$ higher than average, all $of$ which suggest there may $be$ room $to$ take $on$ more debt.

True

False

Question $at$ position $8$

$8$

$1$ point

Question $at$ position $8$

A benefit $of$ computing the operating profit margin $is$ that $it$ focuses specifically $on$ a firm$s$ operations, removing concerns about the firm$s$ debt and tax situation.

A benefit $of$ computing the operating profit margin $is$ that $it$ focuses specifically $on$ a firm$s$ operations, removing concerns about the firm$s$ debt and tax situation.

True

False

Question $at$ position $9$

$9$

$1$ point

Question $at$ position $9$

Profit margin:

Profit margin:

measures total profit earned per dollar $of$ sales

incorporates financing decisions

incorporates operating decisions

Question $at$ position $10$

$10$

$1$ point

Question $at$ position $10$

According $to$ the notes, BEP $is$ perhaps the most important accounting ratio.

According $to$ the notes, BEP $is$ perhaps the most important accounting ratio.

True

False

Question $at$ position $11$

$11$

$1$ point

Question $at$ position $11$

Total invested capital $is$ represented $by$:

Total invested capital $is$ represented $by$:

short term debt

long term debt

short term debt $+$ long term debt

short term debt $+$ long term debt $+$ total equity

total liabilities and shareholders$$ equity

more than one $(or$ all $of)$ the above

Question $at$ position $12$

$12$

$1$ point

Question $at$ position $12$

$DLeons$ profitability ratios are all expected $to$ improve but are still lower than the industry average.

$DLeons$ profitability ratios are all expected $to$ improve but are still lower than the industry average.

True

False