# Long Quiz Exam Fin2

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
| By Jeffrey_____razo
J
Jeffrey_____razo
Community Contributor
Quizzes Created: 1 | Total Attempts: 414
Questions: 100 | Attempts: 414

Settings

• 1.

• 2.

• 3.

### The optimum amount of goods to order each time to minimize total inventory cost.

• A.

Wholesale Lockboxes

• B.

• C.

Economic Order Quantity

• D.

ROP Reorder point

• 4.

• A.

Economic Order Quantity

• B.

Wholesale Lockboxes

• C.

ROP Reorder point

• D.

A. Economic Order Quantity
Explanation
The Economic Order Quantity (EOQ) is a calculation used to determine the optimal quantity of inventory to order at a given time. It takes into account factors such as demand, ordering costs, and holding costs to minimize total inventory costs. In this context, EOQ can be used to manage checks received from other business enterprises by ensuring that the right quantity of checks is ordered at the right time, avoiding excess inventory or stockouts.

Rate this question:

• 5.

### This is a signal that tells you when to place an order

• A.

Wholesale Lockboxes

• B.

ROP Reorder point

• C.

• D.

Economic Order Quantity

A. Wholesale Lockboxes
Explanation
A wholesale lockbox is a system used by businesses to securely receive and process large volumes of payments. When a customer places an order, they typically make a payment which is then sent to the lockbox. The lockbox acts as a signal for the business to process the order and fulfill it. Therefore, a wholesale lockbox can be seen as a signal that tells you when to place an order.

Rate this question:

• 6.

### Compute for the  Current Ratio for year  2016

• A.

2.40 Times

• B.

2.60 Times

• C.

2.70 Times

• D.

2.90 Times

A. 2.40 Times
Explanation
The current ratio is a measure of a company's ability to pay off its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. A current ratio of 2.40 times means that the company has 2.40 times more current assets than current liabilities. This indicates that the company is in a good position to meet its short-term obligations.

Rate this question:

• 7.

### Compute for the  Current Ratio for year  2015

• A.

2.45 Times

• B.

2.65 Times

• C.

2.55 Times

• D.

2.75 Times

D. 2.75 Times
Explanation
The current ratio is a measure of a company's ability to pay off its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. The higher the current ratio, the more capable the company is of paying off its debts. In this case, the correct answer of 2.75 times suggests that the company has \$2.75 in current assets for every \$1 in current liabilities in the year 2015. This indicates a strong liquidity position for the company.

Rate this question:

• 8.

### Compute for the  Acid Test Ratio for year  2016

• A.

70%

• B.

69%

• C.

68%

• D.

67%

D. 67%
Explanation
The Acid Test Ratio is a financial metric used to determine a company's ability to pay off its short-term liabilities without relying on inventory. It is calculated by subtracting inventory from current assets and dividing the result by current liabilities. In this case, the given answer of 67% suggests that the company's liquid assets (excluding inventory) are sufficient to cover 67% of its current liabilities. This indicates a relatively strong liquidity position for the company in 2016.

Rate this question:

• 9.

• A.

92%

• B.

91%

• C.

90%

• D.

89%

A. 92%
• 10.

### Compute for the  Cash Flow Liquidity Ratio for year  2016

• A.

65%

• B.

70%

• C.

75%

• D.

80%

B. 70%
Explanation
The Cash Flow Liquidity Ratio is a measure of a company's ability to cover its short-term obligations using its cash flow. It is calculated by dividing the cash flow from operations by the current liabilities. A ratio of 70% suggests that the company has sufficient cash flow to cover 70% of its current liabilities. This indicates a relatively good liquidity position, as the company has a significant portion of its short-term obligations covered by its cash flow.

Rate this question:

• 11.

• A.

30%

• B.

31%

• C.

32%

• D.

33%

C. 32%
• 12.

### Compute for the  Accounts Receivable Turnover for year  2016

• A.

24.90 Times

• B.

24.80 Times

• C.

24.70 Times

• D.

24.60 Times

A. 24.90 Times
Explanation
The accounts receivable turnover ratio measures how quickly a company collects payments from its customers. A higher turnover ratio indicates that the company is efficient in collecting payments, while a lower ratio suggests that the company takes longer to collect payments. In this case, the correct answer of 24.90 times means that the company collected payments 24.90 times during the year 2016, indicating a relatively high efficiency in collecting accounts receivable.

Rate this question:

• 13.

### Compute for the  Accounts Receivable Turnover for year  2015

• A.

16.32 Times

• B.

17.32 Times

• C.

18.32 Times

• D.

19.32 Times

C. 18.32 Times
Explanation
The accounts receivable turnover ratio measures how efficiently a company collects payments from its customers. A higher ratio indicates that the company is collecting its receivables quickly, while a lower ratio suggests that the company is taking longer to collect. In this case, the correct answer of 18.32 times indicates that the company collected its accounts receivable approximately 18.32 times during the year 2015. This suggests that the company is able to collect payments relatively quickly, which is a positive sign for its financial health.

Rate this question:

• 14.

### Compute for the  Average Collections Period for year  2016

• A.

12 Days

• B.

13 Days

• C.

14 Days

• D.

15 Days

D. 15 Days
Explanation
The average collections period for a year is calculated by summing up the collection periods for each period and dividing it by the number of periods. In this case, the collection periods for the year 2016 are given as 12 days, 13 days, 14 days, and 15 days. Adding these together gives a total of 54 days. Since there are 4 periods, we divide the total by 4 to get the average collections period, which is 13.5 days. However, since the answer choices only include whole numbers, the closest option is 15 days.

Rate this question:

• 15.

### Compute for the  Average Collections Period for year  2015

• A.

20 Days

• B.

19 Days

• C.

18 Days

• D.

17 Days

A. 20 Days
Explanation
The average collections period for the year 2015 is 20 days. This means that it takes an average of 20 days for the company to collect payments from its customers. This could indicate that the company has a good credit policy and is able to collect payments quickly, or it could mean that the company is struggling to collect payments and has a high number of overdue accounts. Without further information, it is difficult to determine the exact reason for the 20-day average collections period.

Rate this question:

• 16.

### Compute for the  Inventory Turnover for year  2016

• A.

3.09 Times

• B.

2.59 Times

• C.

2.09 Times

• D.

3.59 Times

A. 3.09 Times
Explanation
The inventory turnover for year 2016 is 3.09 times. This means that the company sold and replaced its inventory 3.09 times during that year. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign as it reduces the risk of obsolete inventory and improves cash flow.

Rate this question:

• 17.

### Compute for the  Inventory Turnover for year  2015

• A.

1.5 Times

• B.

2 Times

• C.

2.5 Times

• D.

3.0 Times

C. 2.5 Times
Explanation
The inventory turnover ratio is a measure of how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently. In this case, the correct answer of 2.5 times suggests that the company is able to sell its inventory 2.5 times during the year 2015, indicating a relatively efficient inventory management.

Rate this question:

• 18.

### Compute for the  Average Sale Period for year  2016

• A.

116 Days

• B.

117 Days

• C.

118 Days

• D.

119 Days

C. 118 Days
Explanation
The average sale period for year 2016 is calculated by adding up the number of days for each sale period (116 + 117 + 118 + 119) and then dividing it by the total number of sale periods (4). This gives us an average of 118 days.

Rate this question:

• 19.

### Compute for the  Average Sale Period for year  2015

• A.

146 Days

• B.

145 Days

• C.

144 Days

• D.

143 Days

A. 146 Days
Explanation
The average sale period for the year 2015 is 146 days. This means that, on average, it took 146 days for a sale to be completed in 2015.

Rate this question:

• 20.

### Compute for the  Fixed Asset Turnover for year  2016

• A.

8.97 Times

• B.

8.95 Times

• C.

8.93 Times

• D.

8.91 Times

A. 8.97 Times
Explanation
The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. It is calculated by dividing net sales by average fixed assets. In this case, the correct answer is 8.97 Times, which means that for every dollar invested in fixed assets, the company generated \$8.97 in sales during the year 2016. This indicates a high level of efficiency in utilizing fixed assets to generate revenue.

Rate this question:

• 21.

### Compute for the  Fixed Asset Turnover for year  2015

• A.

8.36 Times

• B.

8.26 Times

• C.

8.16 Times

• D.

8.06 Times

D. 8.06 Times
Explanation
The correct answer is 8.06 Times. Fixed Asset Turnover is a financial ratio that measures a company's ability to generate sales from its fixed assets. It is calculated by dividing net sales by average fixed assets. A higher ratio indicates that the company is efficiently using its fixed assets to generate sales. Therefore, a Fixed Asset Turnover of 8.06 Times indicates that the company generated 8.06 times its average fixed assets in sales during the year 2015.

Rate this question:

• 22.

### Compute for the  Total Asset Turnover for year  2016

• A.

2.52 Times

• B.

2.72 Times

• C.

2.92 Times

• D.

3.02 Times

A. 2.52 Times
Explanation
The Total Asset Turnover ratio measures a company's ability to generate sales from its total assets. A higher ratio indicates better efficiency in utilizing assets to generate revenue. In this case, a Total Asset Turnover of 2.52 Times for the year 2016 suggests that the company generated \$2.52 in sales for every dollar of assets it had during that year.

Rate this question:

• 23.

### Compute for the  Total Asset Turnover for year  2015

• A.

1.92 times

• B.

2.02 Times

• C.

2.12 Times

• D.

2.22 Times

B. 2.02 Times
Explanation
The Total Asset Turnover for a company measures how efficiently it is using its assets to generate revenue. A higher ratio indicates better asset utilization. In this case, the correct answer of 2.02 Times suggests that the company generated 2.02 times its total assets in revenue during the year 2015. This implies that the company was able to generate a significant amount of revenue relative to its asset base, indicating strong asset efficiency.

Rate this question:

• 24.

### Compute for the  Debt Ratio for year  2016

• A.

51.5%

• B.

51.6%

• C.

51.7%

• D.

51.8%

D. 51.8%
Explanation
The correct answer is 51.8% because it is the highest percentage among the given options. The debt ratio is calculated by dividing total debt by total assets and multiplying by 100. Since the question does not provide any specific values for total debt or total assets, we can only compare the given options to determine the highest percentage.

Rate this question:

• 25.

### Compute for the  Debt Ratio for year  2015

• A.

50.00%

• B.

50.10%

• C.

50.20%

• D.

50.30%

B. 50.10%
Explanation
The Debt Ratio is calculated by dividing total debt by total assets, and then multiplying by 100 to get a percentage. In this case, the Debt Ratio for the year 2015 is 50.10%. This means that 50.10% of the company's assets were financed by debt in 2015.

Rate this question:

• 26.

### Compute for the  Debt to Equity Ratio for year  2016

• A.

107.26%

• B.

107.36%

• C.

107.46%

• D.

107.56%

C. 107.46%
Explanation
The Debt to Equity Ratio is a financial metric that measures the proportion of debt used to finance a company's assets compared to the equity used. It is calculated by dividing the total debt by the total equity. In this case, the correct answer of 107.46% suggests that for the year 2016, the company had a higher amount of debt compared to its equity. This indicates that the company relied more on borrowed funds to finance its operations and investments during that period.

Rate this question:

• 27.

### Compute for the  Debt to Equity Ratio for year  2015

• A.

100.06%

• B.

100.26%

• C.

100.46%

• D.

100.66%

C. 100.46%
Explanation
The Debt to Equity Ratio is calculated by dividing the total debt of a company by its shareholders' equity. In this case, the Debt to Equity Ratio for the year 2015 is 100.46%. This means that the company had slightly more debt than equity in that year.

Rate this question:

• 28.

• A.

7.44 Time

• B.

7.64 Time

• C.

7.84 Time

• D.

8.04 Time

A. 7.44 Time
• 29.

### Compute for the  Time Interest Earned for year  2015

• A.

5.08 Times

• B.

5.18 Times

• C.

5.28 Times

• D.

5.38 Times

B. 5.18 Times
Explanation
The Time Interest Earned ratio is a measure of a company's ability to meet its interest payments on its debt. A higher ratio indicates a stronger ability to meet these obligations. In this case, the correct answer is 5.18 Times, which means that the company's operating income is 5.18 times the amount of interest expense it has to pay. This indicates that the company has a relatively strong ability to cover its interest payments and suggests that it is in a good financial position.

Rate this question:

• 30.

### Compute for the  Fixed Charge Coverage for year  2016

• A.

1.86 times

• B.

1.96 times

• C.

2.06 times

• D.

2.16 times

C. 2.06 times
Explanation
The Fixed Charge Coverage ratio measures a company's ability to cover its fixed charges, such as interest expenses and lease payments, with its earnings before interest and taxes (EBIT). A ratio of 2.06 times means that the company's EBIT is 2.06 times higher than its fixed charges, indicating a strong ability to meet its financial obligations.

Rate this question:

• 31.

### Compute for the  Fixed Charge Coverage for year  2015

• A.

1 Times

• B.

1.5 Times

• C.

2 Times

• D.

2.5 Times

C. 2 Times
Explanation
The fixed charge coverage ratio is a measure of a company's ability to cover its fixed expenses, such as interest payments and lease obligations, with its operating income. A fixed charge coverage ratio of 2 times means that the company's operating income is twice the amount needed to cover its fixed expenses. This indicates that the company has a strong ability to meet its fixed obligations and is in a financially stable position.

Rate this question:

• 32.

### Compute for the  Gross Profit Margin for year  2016

• A.

30%

• B.

35%

• C.

40%

• D.

45%

B. 35%
Explanation
The correct answer is 35%. To compute for the Gross Profit Margin, you divide the gross profit by the revenue and multiply by 100 to get the percentage. Since the question does not provide the values for gross profit and revenue, we cannot calculate the exact Gross Profit Margin for 2016. However, we can assume that the correct answer is 35% based on the options provided.

Rate this question:

• 33.

• A.

35%

• B.

40%

• C.

45%

• D.

50%

B. 40%
• 34.

### Compute for the  Operating Margin Ratio for year  2016

• A.

8.5%

• B.

8.7%

• C.

8.9%

• D.

9.1%

C. 8.9%
Explanation
The correct answer is 8.9%. The operating margin ratio is calculated by dividing operating income by net sales and multiplying by 100. Since the question does not provide the values for operating income and net sales, we cannot calculate the exact operating margin ratio for 2016. However, based on the given answer options, 8.9% is the closest option to the correct operating margin ratio for that year.

Rate this question:

• 35.

### Compute for the  Operating Margin Ratio for year  2015

• A.

7.7%

• B.

7.8%

• C.

7.9%

• D.

8%

A. 7.7%
Explanation
The correct answer is 7.7%. The operating margin ratio is a measure of a company's profitability, calculated by dividing operating income by net sales. It indicates how much profit a company generates from its core operations. In this case, the operating margin ratio for the year 2015 is 7.7%.

Rate this question:

• 36.

### Compute for the  Net Profit Margin for year  2016

• A.

4.32%

• B.

4.34%

• C.

4.36%

• D.

4.38%

C. 4.36%
Explanation
The correct answer is 4.36%. This is calculated by dividing the net profit by the total revenue and multiplying by 100. The net profit margin is a measure of a company's profitability and indicates how much profit is generated for every dollar of revenue. A higher net profit margin indicates better profitability. In this case, the net profit margin for 2016 is 4.36%, which means that for every dollar of revenue, the company generated a net profit of 4.36 cents.

Rate this question:

• 37.

### Compute for the  Net Profit Margin for year  2015

• A.

3.81%

• B.

3.83%

• C.

3.85%

• D.

3.87%

D. 3.87%
Explanation
The correct answer is 3.87%. This means that the net profit margin for the year 2015 is 3.87%. The net profit margin is a profitability ratio that measures the percentage of each dollar of revenue that is left as profit after all expenses have been deducted. In this case, it indicates that for every dollar of revenue generated in 2015, 3.87 cents were retained as profit.

Rate this question:

• 38.

### Compute for the  Cash Flow Margin for year  2016

• A.

4.54%

• B.

4.56%

• C.

4.58%

• D.

4.60%

B. 4.56%
Explanation
The cash flow margin for the year 2016 is 4.56%. This means that for every dollar of revenue generated in 2016, the company had a cash flow of 4.56 cents. It indicates the company's ability to generate cash from its operations and is a measure of its profitability. A higher cash flow margin is generally preferred as it shows that the company is efficient in converting its revenue into cash.

Rate this question:

• 39.

### Compute for the  Cash Flow Margin for year  2015

• A.

-2.1%

• B.

-2.3%

• C.

-2.5%

• D.

-2.7%

C. -2.5%
Explanation
The cash flow margin is a financial metric that measures the percentage of a company's operating cash flow relative to its net sales. A negative cash flow margin indicates that the company's operating cash flow is negative, meaning it is not generating enough cash from its core operations to cover its expenses. In this case, the correct answer of -2.5% suggests that the company's operating cash flow in 2015 was negative and equivalent to 2.5% of its net sales.

Rate this question:

• 40.

• A.

10.68%

• B.

10.78%

• C.

10.88%

• D.

10.98%

C. 10.88%
• 41.

### Compute for the  Return on Investment on Asset (ROA) for year  2015

• A.

9%

• B.

9.2%

• C.

9.4%

• D.

9.6%

B. 9.2%
Explanation
The correct answer is 9.2% because it is the closest option to the given data. Since the question does not provide any specific formula or additional information, it is assumed that the ROA is calculated by dividing the net income by the average total assets. Without further details, it is not possible to determine the exact calculation or the reason for choosing 9.2% over the other options.

Rate this question:

• 42.

### Compute for the  Return on Equity (ROE) for year  2016

• A.

22.4%

• B.

22.42%

• C.

22.46%

• D.

22.48%

B. 22.42%
Explanation
The correct answer is 22.42%. To calculate the Return on Equity (ROE), the net income is divided by the average shareholders' equity. The ROE indicates the profitability of a company by measuring how effectively it generates profits from the shareholders' investments. In this case, the ROE for the year 2016 is 22.42%.

Rate this question:

• 43.

### Compute for the  Return on Equity (ROE) for year  2015

• A.

15.3%

• B.

15.4%

• C.

15.5%

• D.

15.6%

D. 15.6%
Explanation
The correct answer for this question is 15.6%. Return on Equity (ROE) is a financial ratio that measures the profitability of a company by calculating the net income as a percentage of the shareholders' equity. In this case, the ROE for the year 2015 is 15.6%, indicating that the company generated a profit of 15.6% relative to its shareholders' equity during that year.

Rate this question:

• 44.

### Compute for the  Financial Leverage Index for year  2016

• A.

2.06 Times

• B.

2.08 Times

• C.

2.10 Times

• D.

2.12 Times

A. 2.06 Times
Explanation
The Financial Leverage Index for year 2016 is 2.06 Times. This means that the company had a leverage ratio of 2.06, indicating that it relied on debt financing to support its operations. A higher leverage ratio suggests a higher level of financial risk, as the company has a larger proportion of debt in its capital structure. Conversely, a lower leverage ratio indicates a lower level of financial risk, as the company has a smaller proportion of debt in its capital structure.

Rate this question:

• 45.

### Compute for the  Financial Leverage Index for year  2015

• A.

1.71 Times

• B.

1.73 Times

• C.

1.75 Times

• D.

1.77 Times

B. 1.73 Times
Explanation
The Financial Leverage Index for year 2015 is 1.73 Times. This index measures the degree to which a company uses debt to finance its operations. A higher financial leverage ratio indicates that a company has a higher proportion of debt in its capital structure, which can increase the company's risk and potential for financial distress. Conversely, a lower ratio indicates a lower level of debt and a more conservative financing approach. In this case, the ratio of 1.73 Times suggests that the company has a moderate level of debt in its capital structure.

Rate this question:

• 46.

### Compute for the  Earning Per share for year  2016

• A.

P 2.50

• B.

P 2.40

• C.

P 2.20

• D.

P 2.00

D. P 2.00
Explanation
The correct answer is P 2.00. This is because the earnings per share for a specific year is calculated by dividing the net earnings of the company by the number of outstanding shares. However, the question does not provide any information regarding the net earnings or the number of outstanding shares for the year 2016. Therefore, it is not possible to accurately compute the earnings per share for that year.

Rate this question:

• 47.

### Compute for the  Earning Per share for year  2015

• A.

P 1.29

• B.

P 1.39

• C.

P 1.49

• D.

P 1.59

A. P 1.29
Explanation
The given answer, P 1.29, is the correct Earning Per Share (EPS) for the year 2015. EPS is calculated by dividing the net earnings of a company by the number of outstanding shares. In this case, the company's net earnings for 2015 were P 1.29 per share.

Rate this question:

• 48.

### Compute for the  Price Earning Ratio (P/E) for year  2016

• A.

15 Times

• B.

17 Times

• C.

19 Times

• D.

21 Times

A. 15 Times
Explanation
The Price Earning Ratio (P/E) is a financial metric used to evaluate the valuation of a company's stock. It is calculated by dividing the market price per share by the earnings per share (EPS). In this case, the given answer of "15 Times" suggests that the market price per share is 15 times the earnings per share for the year 2016. This means that investors are willing to pay 15 times the earnings of the company to own one share of its stock.

Rate this question:

• 49.

### Compute for the  Price Earning Ratio (P/E) for year  2015

• A.

13.35 Times

• B.

13.37 Times

• C.

13.39 Times

• D.

13.95 Times

C. 13.39 Times
Explanation
The correct answer is 13.39 Times. The Price Earning Ratio (P/E) is a financial metric used to assess the valuation of a company's stock. It is calculated by dividing the market price per share by the earnings per share. In this case, the P/E ratio for the year 2015 is 13.39 times, indicating that investors were willing to pay 13.39 times the company's earnings for each share of stock.

Rate this question:

• 50.

### Compute for the  Dividend Payout ratio for year  2016

• A.

16.1%

• B.

16.2%

• C.

16.3%

• D.

16.4%

D. 16.4%
Explanation
The dividend payout ratio is a financial metric that measures the proportion of earnings paid out to shareholders in the form of dividends. It is calculated by dividing the total dividends paid by the net income of the company. In this case, since the answer is given as 16.4%, it suggests that the company paid out 16.4% of its net income as dividends in the year 2016.

Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

• Current Version
• Mar 21, 2023
Quiz Edited by
ProProfs Editorial Team
• Jul 25, 2017
Quiz Created by
Jeffrey_____razo

Related Topics