Financial Analysis Test - Take Free Test

Q1. Find out the sales of a company that has 8% return on 300,000 assets and 5% net profit margin.

3750000

300000

150000

480000

Q2. Which of these can help a company in improving its debt-to-total assets ratio?

Shift short term debt to long-term

Shift long-term debt to short-term

Borrowing more finances

By selling common stock

Q3. What does the "increase or decrease in cash and cash equivalents" appear as on accounting statements?

Financing activities cash flow

None of the above

Operating activities cash flow

Investing activities cash flow

Q4. What is the ideal level of current ratio?

0.084027777777778

0.16875

0.16736111111111

B and C

Q5. If the ratio of debt-to-total assets of a company is 0.4, determine the ratio of debt-to-equity

0.667

0.1

0.5

0.27

Q6. Which of these ratios is considered to be the safe margin of solvency?

Liquid ratio

Current ratio

All of the above

Quick ratio

Q7. Choose the correct use of funds in a firm:

To increase value of any liability

When there's decrease in cash

To increase value of fixed assets

For tax refunds

Q8. What are the examinations of the sources and the efficiency of fund statements collectively a part of?

Funds flow analysis

Calculations needed to prepare the balance sheet

Forecasting techniques

Ratio analysis

Q9. The cash budget of a company also includes:

Amortization

Various dividend

Depreciation charges

Goodwill

Q10. If the net profit margin of a company is 5% and the total assets are 800,000 as well as the ROI percentage is 8%, what is the total asset turnover of the company?

1.6

4

2

2.5

Your Score

- of - questions are answered correctly

Advanced Diploma in Financial Accounting

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