Industry Ratios Trivia Quiz!

15 Questions | Total Attempts: 77

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Industry Ratios Trivia Quiz!


Questions and Answers
  • 1. 
    The current ratio measures a company's ability to service its current obligations. Understanding that a higher ratio provides a greater 'cushion' between current obligations and a firm's ability to pay them, which of the following selections below would be considered the more ideal or acceptable current ratio
    • A. 

      1:2

    • B. 

      2:1

  • 2. 
    A company with a Current Ratio indicating that liabilities exceed current assets may ​have problems meeting its immediate and short-term obligations and bills. 
    • A. 

      True

    • B. 

      False

  • 3. 
    The Quick Ratio is a stricter measure of liquidity when compared to the Current ratio as inventory and other assets that cannot be easily converted to cash are removed from the calculation. The Quick Ratio is also known as the "_______" test?
    • A. 

      Depreciation

    • B. 

      Beep

    • C. 

      Acid

    • D. 

      Assets

  • 4. 
    Total Current Assets are an important item on a company's balance sheet because they can be used to fund day to day operations and expenses. Total Current Assets include any company asset that can be turned to cash within one year from the date shown in the company's balance sheet. 
    • A. 

      True

    • B. 

      False

  • 5. 
    The addition of Ratios to the Industry product means that CRMs can renew all clients with a standard increase of at least 5%. 
    • A. 

      True

    • B. 

      False

  • 6. 
    Banking is one of the key verticals that will find Ratios particularly useful. Which of the following is least likely to be an example of how a banking client could use Ratios?
    • A. 

      To identify triggers and performance tolerance in portfolios

    • B. 

      Credit analysis for benchmarking

    • C. 

      Annual credit reviews

    • D. 

      To assist in hiring new staff

  • 7. 
    IBISWorld is partnering with RMA to provide Ratios. Ratio data is generated from the financial statements of small and medium-size businesses, provided to RMA's member institutions. How many financial statements are used to generate the current data?
    • A. 

      2.6 million

    • B. 

      2,600

    • C. 

      260,000

    • D. 

      260

  • 8. 
    Public and non-public companies are included in the Ratio data. 
    • A. 

      True

    • B. 

      False

  • 9. 
    Clients will be able to view four years of Ratios, including the latest year, on the IBISWorld website. How many years of historical data can clients download if they choose?
    • A. 

      5

    • B. 

      8

    • C. 

      10

    • D. 

      12

  • 10. 
    Which of the following information about the provision of Ratios is correct? 
    • A. 

      Clients can only find out the number of companies (sample size) for each set of ratios by requesting it directly from their CRM.

    • B. 

      The ratios will be updated in November each year.

    • C. 

      Existing published ratios covers the period from 4/1/2014 to 3/31/2015.

    • D. 

      Current year is broken down into two sample sizes: Small (generating less than $10M) and Larger (generating more than $10M).

  • 11. 
    As a result of IBISWorld and RMA's partnering to publish industry ratios for IBISWorld reports, current clients of both companies should cancel their separate subscription to RMA. 
    • A. 

      True

    • B. 

      False

  • 12. 
    In regards to Ratios and our competitors in the marketplace, IBISWorld’s primary value is the additional industry analysis and insight that we write that both Bizminer & Microbilt do not provide.
    • A. 

      True

    • B. 

      False

  • 13. 
    Which of the following verticals would you be least likely to pitch Ratios to?
    • A. 

      Banking

    • B. 

      Marketing

    • C. 

      Audit

    • D. 

      Business Valuation

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