Question 1(10 points)

Financial analysis is designed to cover four areas or dimensions of the firm. Which one of the following does not belong to these four areas?

Question 1 options:

liquidity ratios

asset utilization ratios

financial leverage ratios

sources and uses of fund ratios

Question 2(10 points)

In cost-volume-profit analysis, a firm "breaks even" when its total revenues:

Question 2 options:

equal total costs

equal variable costs

are less than the sum of variable and fixed costs

equal fixed costs

Question 3(10 points)

Question 3 options:

Suppose a company's equity is currently selling for $55 per share, with 4 million shares outstanding.If the company also has 17 thousand bonds outstanding, which are selling at 94 percent of par, what are the company's current capital structure weights?

Question 4(10 points)

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

Question 4 options:

15%

20%

25%

39%

Question 5(10 points)

The goal of a business should be:

Question 5 options:

maximization of the owners' wealth

maximization of accounting profit

maximization of sales

maximization of assets

Question 6(10 points)

As part of the measurement of financial leverage, the total debt ratio is calculated as:

Question 6 options:

total liabilities divided by total assets

total assets minus current liabilities divided by total liabilities divided by total liabilities

total liabilities times total assets

current liabilities divided by total assets

Question 7(10 points)

Top finance officers in a corporation may include:

Question 7 options:

treasurer

chief financial officer

controller

all the above

none of the above

Question 8(10 points)

Which of the following are considered to be major financial management functions?

Question 8 options:

financial planning and analysis

asset management

raising funds

all of the above

none of the above

Question 9(10 points)

Which one of the following financial statements reports a firm's assets and the claims on assets?

Question 9 options:

balance sheet

statement of changes in financial position

cash flow statement

income statement

Question 10(10 points)

The current liabilities of a business may include:

Question 10 options:

notes payable

accounts receivable

prepaid expenses

depreciation reserves