Solved by verified expert :28.
Net income divided by sales is known as a firm’s:A.
profit margin.
b. return
on assets.
c. return
on equity.
d.asset
turnover.
e. earnings
before interest and taxes.
29.
Return on assets is equal to:
a. sales
divided by current assets.
b. sales
divided by total assets.
c. net
income divided by current assets.
d.net
income divided by net fixed assets.E.
net income divided by total assets.
30.
The financial ratio measured as net income divided by total equity is known as
the firm’s:
a. profit
margin.
b. return
on assets.C. return on
equity.
d.asset
turnover.
e. earnings
before interest and taxes.
3-10
Chapter
003 Working with Financial Statements
31.
The ratio computed by dividing the price per share of stock by the earnings per
share is known as the:
a. return
on assets.
b. return
on equity.
c. debt-equity
ratio.
d..price-earnings
ratio.
e. Du
Pont identity.
32.
The market-to-book ratio is measured as:
a. the
market value of total assets divided by the book value of total assets.
b. the
market value of inventory divided by the book value of inventory.
c. net
income divided by the market value per share.
d.market
value per share of stock divided by earnings per share.
E. market value
per share divided by book value per share.
33.
The PEG ratio is equal to the price per share divided by the:A.
expected future earnings growth rate.
b. profit
margin.
c. sales
growth rate.
d.growth
rate of inflation.
e. earnings
per share.
3-11
Chapter
003 Working with Financial Statements
34.
The market value of a firm’s assets divided by the replacement cost of those
assets is referred to as:
A. Tobin’s Q.
b. the
market-to-book value.
c. the
PEG ratio.
d.the
asset growth rate.
e. the
asset turnover.
35.
The price-sales ratio is equal to the:
a. average
price of a product divided by the annual sales of a firm.
b. average
price of a product divided by the number of products sold in one year.
c. current
price of a product divided by the number of products in inventory that are
ready for sale.
d.price
per share divided by sales growth rate.
E. price per share divided by the sales
per share.
36.
The U.S. government coding system that classifies firms by their specific type
of business operations is known as the:
a. NASDAQ
100.
b. Standard
& Poor’s 500.
C. Standard
Industrial Classification code.
d.Governmental
ID code.
e. Government
Engineered Coding System.
3-12
Chapter
003 Working with Financial Statements
37.
Which one of the following is a source of cash?A.
an increase in accounts payable
b. an
increase in cash
c. a
purchase of inventory
d.the
payoff of a loan
e. a
credit sale to a customer
