Feedback — Module two graded quiz - This quiz contributes 10% towards your final grade - Due 15th JuneHelp Center

You submitted this quiz on Tue 7 Jul 2015 5:05 AM PDT. You got a score of 10.00 out of 10.00. However, you will not get credit for

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This quiz contributes 10% towards your final grade for this course.

There are 10 questions - Attempt all questions.

You can attempt this quiz two (2) times only. The highest score will be used towards your final grade.

Ensure you have watched all the lecture videos, done the practice quiz and other learning activities for Module 2 BEFORE doing

this quiz.

Question 1

Operating margin equals:

Your Answer Score Explanation

Operating income/Sales

Correct 1.00 Correct

Gross profit/Owners equity

Operating income/Cost of goods sold

Gross profit/Assets

Total 1.00 / 1.00

Question 2

ROA equals:

Your Answer Score Explanation

Net income/[(average) BV of assets]

Correct 1.00 Correct

Gross profit/Owners equity

Gross profit/assets

Net income/[(average) BV of equity]

Total 1.00 / 1.00

Question 3

Earnings per share equals:

Your Answer Score Explanation

Gross profit/Assets

Net income/Average outstanding number of shares

Correct 1.00 Correct

Net income/Liabilities

Gross profit/Owners equity

Total 1.00 / 1.00

Question 4

What are the most often quoted and related financial ratios?

Your Answer Score Explanation

Earnings per share and Price/Earnings

Correct 1.00 Correct

Price/Earnings and gross margin

Earnings per share and Price/Sales

Operating margin and gross margin

Total 1.00 / 1.00

Question 5

Debt-equity ratio equals:

Your Answer Score Explanation

Total debt/Total assets

Total equity/Total debt

Total assets/Total debt

Total debt/Total equity

Correct 1.00 Correct

Total 1.00 / 1.00

Question 6

The current ratio equals:

Your Answer Score Explanation

Current assets/Current liabilities

Correct 1.00 Correct

Total debt/Total equity

Gross profit/Sales

Equity/ Current liabilities

Total 1.00 / 1.00

Question 7

The quick ratio will always be equal to, or larger than, the cash ratio.

Your Answer Score Explanation

True

Correct 1.00 Correct

False

Total 1.00 / 1.00

Question 8

Debt is generally considered a cheaper form of funding than equity funding?

Your Answer Score Explanation

False

True

Correct 1.00 Correct

Total 1.00 / 1.00

Question 9

What do efficiency “activity” ratios capture?

Your Answer Score Explanation

The firms ability to manage current assets and current liabilities

Stock price movements

The firms ability to meet short term liabilities

The firms ability to effectively use its assets in generating revenue

Correct 1.00 Correct

Total 1.00 / 1.00

Question 10

Total asset turnover equals:

Your Answer Score Explanation

Gross profit/Sales

Total debt/Total equity

Current assets/Current liabilities

Sales/(average)Total assets

Correct 1.00 Correct

Total 1.00 / 1.00