Financial Analysis Quiz

Financial Analysis Quiz

Student Quiz

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Academic Quiz System

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/* ===================== QUESTION BANK ===================== */
const allQuestions = [
{
“text”: “A firm has current assets of Rs. 500,000 and current liabilities of Rs. 250,000. What is the current ratio?”,
“options”: [“0.5”, “1.5”, “2.0”, “2.5”],
“answer”: “2.0”
},
{
“text”: “If current assets are Rs. 800,000, inventory is Rs. 300,000, and current liabilities are Rs. 400,000, the quick ratio is:”,
“options”: [“0.75”, “1.00”, “1.25”, “2.00”],
“answer”: “1.25”
},
{
“text”: “A company reports cash Rs. 100,000, receivables Rs. 200,000, inventory Rs. 300,000, and current liabilities Rs. 400,000. What is the cash ratio?”,
“options”: [“0.25”, “0.50”, “0.75”, “1.00”],
“answer”: “0.25”
},
{
“text”: “Current ratio is 2:1 and current liabilities are Rs. 300,000. Current assets equal:”,
“options”: [“Rs. 150,000”, “Rs. 300,000”, “Rs. 450,000”, “Rs. 600,000”],
“answer”: “Rs. 600,000”
},
{
“text”: “A firm has working capital of Rs. 200,000 and current liabilities of Rs. 500,000. Current ratio is:”,
“options”: [“1.2”, “1.4”, “1.5”, “1.8”],
“answer”: “1.4”
},
{
“text”: “Net income is Rs. 150,000 and sales are Rs. 1,000,000. Net profit margin is:”,
“options”: [“10%”, “12%”, “15%”, “18%”],
“answer”: “15%”
},
{
“text”: “Gross profit is Rs. 400,000 and cost of goods sold is Rs. 600,000. Gross profit margin is:”,
“options”: [“30%”, “40%”, “50%”, “67%”],
“answer”: “40%”
},
{
“text”: “Operating income is Rs. 300,000 and sales are Rs. 1,200,000. Operating margin equals:”,
“options”: [“20%”, “25%”, “30%”, “35%”],
“answer”: “25%”
},
{
“text”: “Average total assets are Rs. 2,000,000 and net income is Rs. 200,000. ROA is:”,
“options”: [“8%”, “10%”, “12%”, “15%”],
“answer”: “10%”
},
{
“text”: “Net income is Rs. 250,000 and average equity is Rs. 1,250,000. ROE equals:”,
“options”: [“15%”, “18%”, “20%”, “25%”],
“answer”: “20%”
},
{
“text”: “Total liabilities are Rs. 900,000 and total assets are Rs. 1,500,000. Debt ratio equals:”,
“options”: [“40%”, “50%”, “60%”, “75%”],
“answer”: “60%”
},
{
“text”: “A firm has total debt of Rs. 800,000 and equity of Rs. 400,000. Debt-to-equity ratio is:”,
“options”: [“1.0”, “1.5”, “2.0”, “2.5”],
“answer”: “2.0”
},
{
“text”: “EBIT is Rs. 300,000 and interest expense is Rs. 75,000. Interest coverage ratio equals:”,
“options”: [“2”, “3”, “4”, “5”],
“answer”: “4”
},
{
“text”: “Long-term debt is Rs. 600,000 and total capitalization is Rs. 1,200,000. Long-term debt ratio equals:”,
“options”: [“25%”, “40%”, “50%”, “60%”],
“answer”: “50%”
},
{
“text”: “If equity is Rs. 700,000 and assets are Rs. 1,000,000, equity ratio is:”,
“options”: [“50%”, “60%”, “70%”, “80%”],
“answer”: “70%”
},
{
“text”: “Contribution margin is Rs. 400,000 and EBIT is Rs. 200,000. Degree of operating leverage (DOL) is:”,
“options”: [“1”, “1.5”, “2”, “3”],
“answer”: “2”
},
{
“text”: “EBIT is Rs. 300,000 and interest is Rs. 100,000. Degree of financial leverage (DFL) equals:”,
“options”: [“1.33”, “1.50”, “2.00”, “3.00”],
“answer”: “2.00”
},
{
“text”: “If DOL = 2 and sales increase by 10%, EBIT will increase by:”,
“options”: [“10%”, “15%”, “20%”, “25%”],
“answer”: “20%”
},
{
“text”: “Combined leverage equals DOL × DFL. If DOL = 2 and DFL = 1.5, combined leverage equals:”,
“options”: [“2”, “2.5”, “3”, “3.5”],
“answer”: “3”
},
{
“text”: “High operating leverage indicates:”,
“options”: [
“High variable costs”,
“High fixed costs”,
“Low break-even point”,
“Low earnings volatility”
],
“answer”: “High fixed costs”
},
{
“text”: “Net income is Rs. 500,000 and shares outstanding are 100,000. EPS equals:”,
“options”: [“Rs. 3”, “Rs. 4”, “Rs. 5”, “Rs. 6”],
“answer”: “Rs. 5”
},
{
“text”: “Market price per share is Rs. 50 and EPS is Rs. 5. P/E ratio equals:”,
“options”: [“5”, “8”, “10”, “15”],
“answer”: “10”
},
{
“text”: “Dividend per share is Rs. 2 and market price is Rs. 40. Dividend yield equals:”,
“options”: [“2%”, “4%”, “5%”, “10%”],
“answer”: “5%”
},
{
“text”: “Book value of equity is Rs. 2,000,000 and shares outstanding are 200,000. Book value per share equals:”,
“options”: [“Rs. 5”, “Rs. 8”, “Rs. 10”, “Rs. 12”],
“answer”: “Rs. 10”
},
{
“text”: “Market price is Rs. 30 and book value per share is Rs. 10. Market-to-book ratio equals:”,
“options”: [“2”, “2.5”, “3”, “4”],
“answer”: “3”
},
{
“text”: “Sales in base year were Rs. 1,000,000 and Rs. 1,300,000 in current year. Trend percentage equals:”,
“options”: [“110%”, “120%”, “130%”, “150%”],
“answer”: “130%”
},
{
“text”: “If profit was Rs. 200,000 in base year and Rs. 160,000 in current year, trend percentage equals:”,
“options”: [“70%”, “75%”, “80%”, “85%”],
“answer”: “80%”
},
{
“text”: “An increasing trend in expenses with declining sales indicates:”,
“options”: [
“Improved efficiency”,
“Stable performance”,
“Profit margin pressure”,
“High liquidity”
],
“answer”: “Profit margin pressure”
},
{
“text”: “Trend analysis primarily compares:”,
“options”: [
“Firms within industry”,
“One firm over time”,
“Market averages”,
“Forecasted data”
],
“answer”: “One firm over time”
},
{
“text”: “If inventory trend index rises faster than sales index, it suggests:”,
“options”: [“Strong demand”, “Overstocking”, “Improved turnover”, “Higher profitability”],
“answer”: “Overstocking”
},
{
“text”: “Beginning inventory Rs. 100,000, purchases Rs. 500,000, ending inventory Rs. 150,000. COGS equals:”,
“options”: [“Rs. 350,000”, “Rs. 400,000”, “Rs. 450,000”, “Rs. 500,000”],
“answer”: “Rs. 450,000”
},
{
“text”: “If ending inventory increases, COGS will:”,
“options”: [“Increase”, “Decrease”, “Remain same”, “Double”],
“answer”: “Decrease”
},
{
“text”: “Inventory turnover is 5 times and average inventory is Rs. 200,000. COGS equals:”,
“options”: [“Rs. 800,000”, “Rs. 900,000”, “Rs. 1,000,000”, “Rs. 1,200,000”],
“answer”: “Rs. 1,000,000”
},
{
“text”: “Higher COGS with constant sales results in:”,
“options”: [
“Higher gross profit”,
“Lower gross profit”,
“No change”,
“Higher net income”
],
“answer”: “Lower gross profit”
},
{
“text”: “Days inventory outstanding = 365 / inventory turnover. If turnover is 10, days outstanding equals:”,
“options”: [“18.25”, “36.5”, “45”, “60”],
“answer”: “36.5”
},
{
“text”: “Forecasted sales are Rs. 2,000,000 and net profit margin is 10%. Expected net income equals:”,
“options”: [“Rs. 150,000”, “Rs. 180,000”, “Rs. 200,000”, “Rs. 250,000”],
“answer”: “Rs. 200,000”
},
{
“text”: “A firm plans asset growth of Rs. 500,000 and retains earnings of Rs. 300,000. External financing needed equals:”,
“options”: [“Rs. 100,000”, “Rs. 150,000”, “Rs. 200,000”, “Rs. 250,000”],
“answer”: “Rs. 200,000”
},
{
“text”: “If sales grow by 20% and assets vary directly with sales, assets will:”,
“options”: [“Increase by 10%”, “Increase by 15%”, “Increase by 20%”, “Increase by 25%”],
“answer”: “Increase by 20%”
},
{
“text”: “Pro-forma statements are primarily used for:”,
“options”: [“Auditing”, “Tax filing”, “Forecasting”, “Valuation only”],
“answer”: “Forecasting”
},
{
“text”: “Sustainable growth rate increases when:”,
“options”: [
“Dividend payout increases”,
“Profit margin decreases”,
“Asset turnover increases”,
“Financial leverage decreases”
],
“answer”: “Asset turnover increases”
},
{
“text”: “Given: Current Assets = $50,000; Current Liabilities = $20,000; Inventory = $13,000; Prepaid Expenses = $1,000. What is the liquid (quick) ratio?”,
“options”: [“1.5 : 1”, “1.8 : 1”, “1 : 1.8”, “1 : 1”],
“answer”: “1.8 : 1”
},
{
“text”: “A company has Cash of $10,000, Accounts Receivable of $30,000, and Inventory of $80,000. If its Current Liabilities are $60,000, what is its working capital?”,
“options”: [“$120,000”, “$60,000”, “$66,000”, “$196,000”],
“answer”: “$60,000”
},
{
“text”: “Using the data from the previous question, what is the company’s Current Ratio?”,
“options”: [“1.0:1”, “2.1:1”, “2.0:1”, “0.7:1”],
“answer”: “2.0:1”
},
{
“text”: “A firm’s quick ratio is 1.8:1, its current ratio is 2.7:1, and its current liabilities are $60,000. Determine the value of its inventory.”,
“options”: [“$54,000”, “$60,000”, “$162,000”, “$108,000”],
“answer”: “$54,000”
},
{
“text”: “Calculate the quick ratio for a company with Current Assets of $152,900, Inventory of $86,900, and Current Liabilities of $85,000.”,
“options”: [“1.80 : 1”, “1.00 : 1”, “0.78 : 1”, “2.10 : 1”],
“answer”: “0.78 : 1”
},
{
“text”: “Dividendosaurus, Inc. reports Net Income of $200 and Total Assets of $950. What is the Return on Assets (ROA)?”,
“options”: [“39.2%”, “42.1%”, “21.1%”, “45.3%”],
“answer”: “21.1%”
},
{
“text”: “If a company has Sales of $3,000 and Net Income of $200, what is its Profit Margin?”,
“options”: [“6.67%”, “13.33%”, “14.33%”, “46.67%”],
“answer”: “6.67%”
},
{
“text”: “A firm has $20 million in total assets and a debt/equity ratio of 0.60. If its Net Income is $1,395,000, what is the Return on Equity (ROE)?”,
“options”: [“11.16%”, “14.4%”, “18.6%”, “24.0%”],
“answer”: “18.6%”
},
{
“text”: “Company A has a Net Income of $103,007 and Total Equity of $304,730. Calculate the ROE.”,
“options”: [“19.87%”, “33.8%”, “12%”, “34.8%”],
“answer”: “33.8%”
},
{
“text”: “A company with Sales of $82.50 and Variable Costs of $46.20 has a Contribution of $36.30. If the Net Profit is $16.38, what is the Net Profit Ratio?”,
“options”: [“16.8%”, “19.8%”, “27.3%”, “17.4%”],
“answer”: “19.8%”
},
{
“text”: “Calculate the Times Interest Earned (TIE) ratio for a firm with EBIT of $187,000 and Interest Paid of $14,000.”,
“options”: [“10.00 times”, “13.36 times”, “6.25 times”, “9.40 times”],
“answer”: “13.36 times”
},
{
“text”: “A firm has Total Debt of $172,000 and Total Stockholders’ Equity of $534,000. What is the debt-to-equity ratio?”,
“options”: [“25.1%”, “25.6%”, “32.2%”, “33.9%”],
“answer”: “32.2%”
},
{
“text”: “Firm A has a debt-total asset ratio of 35% and a return on total assets of 12%. Calculate its ROE.”,
“options”: [“12.0%”, “18.5%”, “15.7%”, “34.3%”],
“answer”: “18.5%”
},
{
“text”: “If a company has Shareholders’ Funds of $60,000 and Total Assets of $120,000, what is its Proprietary Ratio?”,
“options”: [“0.53 : 1”, “1.43 : 1”, “0.5 : 1”, “2.0 : 1”],
“answer”: “0.5 : 1”
},
{
“text”: “A firm has EBIT of $23,556.52, Depreciation of $2,382, and Interest Expense of $3,605. What is the Cash Coverage Ratio?”,
“options”: [“7.195”, “6.534”, “13.36”, “5.821”],
“answer”: “7.195”
},
{
“text”: “Under Situation I, a company has a Contribution of $10,000 and EBIT of $6,000. What is the Operating Leverage?”,
“options”: [“2.22”, “1.33”, “1.67”, “1.09”],
“answer”: “1.67”
},
{
“text”: “Using the data from the previous question, if the EBT is $4,500, what is the Financial Leverage?”,
“options”: [“1.67”, “1.33”, “2.22”, “1.10”],
“answer”: “1.33”
},
{
“text”: “Calculate the Combined Leverage for the company in the previous two questions.”,
“options”: [“1.67”, “1.33”, “2.22”, “2.86”],
“answer”: “2.22”
},
{
“text”: “Ashika Ltd. has a Combined Leverage of 1.44. If Sales increase by 10%, by what percentage will the EPS increase?”,
“options”: [“10%”, “1.44%”, “14.4%”, “20%”],
“answer”: “14.4%”
},
{
“text”: “Company A has a Degree of Financial Leverage of 3 and Interest Expenses of $200. Solve for its EBIT.”,
“options”: [“$600”, “$400”, “$300”, “$100”],
“answer”: “$300”
},
{
“text”: “Sublyme Corp. has Net Income of $200M and 50M common shares. It also has 2M preferred shares, each convertible into two common shares. Calculate Diluted EPS.”,
“options”: [“$3.52”, “$3.65”, “$3.70”, “$4.00”],
“answer”: “$3.70”
},
{
“text”: “A stock sells for $45.00 and has a Diluted EPS of $9.00. What is the Price-Earnings (P-E) ratio?”,
“options”: [“3.0 times”, “4.0 times”, “5.0 times”, “6.0 times”],
“answer”: “5.0 times”
},
{
“text”: “If a company has a P-E ratio of 12 and a Payout Ratio of 0.6, what is its Dividend Yield?”,
“options”: [“5.0%”, “7.2%”, “7.5%”, “10.8%”],
“answer”: “5.0%”
},
{
“text”: “A corporation has Total Equity of $13,934,000 and Preferred Stock of $3,500,000. If there are 1,050,000 common shares, what is the Book Value per share?”,
“options”: [“$5.00”, “$7.50”, “$9.94”, “$13.27”],
“answer”: “$9.94”
},
{
“text”: “Blackmer Co. has Net Income of $107,000 and 80,000 common shares. It has $200,000 of 8% convertible bonds (convertible to 20,000 shares) and a 34% tax rate. What is the Diluted EPS?”,
“options”: [“$1.18”, “$1.07”, “$1.20”, “$1.23”],
“answer”: “$1.18”
},
{
“text”: “In 2010, Coca-Cola had an operating income of $8,449M compared to $8,231M in 2009. What was the percentage change?”,
“options”: [“2.6%”, “13.3%”, “21.8%”, “1.2%”],
“answer”: “2.6%”
},
{
“text”: “A company’s Net Sales in 2006 (base year) were $24,088M. In 2010, Net Sales were $35,119M. What is the trend percentage for 2010?”,
“options”: [“100%”, “146%”, “46%”, “134%”],
“answer”: “146%”
},
{
“text”: “PepsiCo’s Net Income increased by $374M (6.3%) while Coca-Cola’s increased by $4,985M (73.1%). Which statement is true regarding their growth?”,
“options”: [
“PepsiCo has higher percentage growth.”,
“Coca-Cola’s growth far exceeded PepsiCo’s due to a one-time gain.”,
“Both companies had identical growth rates.”,
“PepsiCo’s total asset growth was lower than Coca-Cola’s.”
],
“answer”: “Coca-Cola’s growth far exceeded PepsiCo’s due to a one-time gain.”
},
{
“text”: “If Cash increased from $9,151M in 2009 to $11,199M in 2010, what is the percentage increase?”,
“options”: [“12.6%”, “17.9%”, “22.4%”, “49.8%”],
“answer”: “22.4%”
},
{
“text”: “Total assets increased by $24,250M from a base of $48,671M. Calculate the percentage increase.”,
“options”: [“49.8%”, “54.0%”, “109.8%”, “17.8%”],
“answer”: “49.8%”
},
{
“text”: “Corner Bookstore has 5 books available for sale with costs of $85, $87, $89, $89, and $90. If it uses Periodic FIFO and sells one book for $110, what is the Gross Profit?”,
“options”: [“$25”, “$20”, “$22”, “$21”],
“answer”: “$25”
},
{
“text”: “Using the data from the previous question, if the bookstore uses Periodic LIFO, what is the Gross Profit?”,
“options”: [“$25”, “$20”, “$22”, “$21”],
“answer”: “$20”
},
{
“text”: “Using the data from the previous question, what is the weighted average cost per book?”,
“options”: [“$85”, “$90”, “$88”, “$89”],
“answer”: “$88”
},
{
“text”: “A company needs to estimate ending inventory. Beginning inventory was $25,000, Purchases were $52,000, and Sales were $63,500. If the COGS is 80% of sales, what is the estimated ending inventory?”,
“options”: [“$26,200”, “$77,000”, “$50,800”, “$12,700”],
“answer”: “$26,200”
},
{
“text”: “Using the Retail Method, a company has Goods Available at Cost of $80,000 and at Retail of $100,000. If Ending Inventory at Retail is $10,000, what is it at Cost?”,
“options”: [“$10,000”, “$8,000”, “$2,000”, “$80,000”],
“answer”: “$8,000”
},
{
“text”: “A firm has a capital intensity ratio of 0.5 and spontaneous liabilities ratio of 0.05. If sales increase by $500M, the profit margin is 2.7%, and the retention ratio is 0.6, calculate the AFN for projected sales of $2,500M.”,
“options”: [“$250.0 million”, “$25.0 million”, “$184.5 million”, “$40.5 million”],
“answer”: “$184.5 million”
},
{
“text”: “If a company is operating at 75% capacity with sales of $2,000, what are its full capacity sales?”,
“options”: [“$1,500”, “$2,500”, “$2,667”, “$2,000”],
“answer”: “$2,667”
},
{
“text”: “Projected sales are $2,500M and Costs/Sales is 60%. What is the pro forma COGS?”,
“options”: [“$2,000M”, “$1,500M”, “$1,200M”, “$875M”],
“answer”: “$1,500M”
},
{
“text”: “A firm expects sales to grow by 20% from $891,600. If the payout ratio is constant and current net income is $103,007, what is the pro forma Addition to Retained Earnings if pro forma Net Income is $125,699?”,
“options”: [“$103,007”, “$44,204”, “$81,495”, “$66,783”],
“answer”: “$81,495”
},
{
“text”: “To maintain a constant debt-equity ratio, a firm uses the Sustainable Growth Rate formula. If ROE is 33.8% and the retention ratio is 0.648, what is the SGR?”,
“options”: [“20%”, “28%”, “34%”, “22%”],
“answer”: “28%”
}
]

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