Which of the following is NOT a feature of preferred shares?
- A) Distributive
- B) Callable
- C) In arrears
- D) Cumulative
Which one of the following represents the value of shares in the market at any point of time?
- A) Par value
- B) Book value
- C) Face value
- D) Market value
Which of the following would NOT improve the current ratio?
- A) Issue long-term debt to buy inventory
- B) Sell common stock to reduce current liabilities
- C) Sell fixed assets to reduce accounts payable
- D) Borrow short term to finance additional fixed assets
Krisle and Kringle's debt-to-total assets ratio is 4%. What is its debt-to-equity ratio?
- A) 2%
- B) 7%
- C) 6%
- D) 3%
A company experiences a dramatic fall in its gross profit ratio. This could be the result of which of the following?
- A) An increase in competition in the company's main product market
- B) An increase in the incidence of bad debts
- C) An increase in overhead expenses
- D) An increase in demand for the company's products
Which of the following is NOT an objective of fundamental analysis?
- A) To make projection on its business performance
- B) To predict the future stock price
- C) To evaluate its management and make internal business decisions
- D) To calculate its credit risk
Which of the following is NOT a goal of analysis of financial statement?
- A) Assess the past performance
- B) Asses the current financial position
- C) Predict the future performance of the company
- D) Asses the working of management in the future
In isolation, which of the following is TRUE about a financial ratio?
- A) Useless piece of information
- B) Useful piece of information
- C) Useful only for past performance
- D) Useful only for future predictions
Financial statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other indicators. To which does the current ratio most relate?
- A) Liquidity
- B) Turnover
- C) Profitability
- D) Other indicator
Which of the following is the ideal position of debt ratio?
- A) 30%
- B) 60%
- C) 50%
- D) 45%