Title Bản sao của ross12e_chapter03_tb_answerkey.docx ✅

1 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Corporate Finance, 12e (Ross) Chapter 3 Financial Statements and Cash Flow 1) Which statement expresses all relative account values as a percentage of total assets? A) Pro forma balance sheet B) Common-size income statement C) Statement of cash flows D) Pro forma income statement E) Common-size balance sheet Answer: E Difficulty: 1 Easy Section: 3.1 Financial Statements Analysis Topic: Standardized financial statements Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) You would like to compare your firm's cost structure to that of your competitors. However, your competitors are much larger in size than your firm. Which one of these would best enable you to compare costs across your industry? A) Pro forma balance sheet B) Common-size income statement C) Statement of cash flows D) Pro forma income statement E) Common-size balance sheet Answer: B Difficulty: 1 Easy Section: 3.1 Financial Statements Analysis Topic: Standardized financial statements Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation
2 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3) Which one of these terms is most synonymous with the term "income from operations"? A) TTM B) EBIT C) LTM D) EBITDA E) EPS Answer: B Difficulty: 1 Easy Section: 3.1 Financial Statements Analysis Topic: Standardized financial statements Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 4) Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as: A) asset management ratios. B) long-term solvency measures. C) liquidity measures. D) profitability ratios. E) market value ratios. Answer: C Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Short-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 5) The current ratio is measured as: A) current assets minus current liabilities. B) current assets divided by current liabilities. C) current liabilities minus inventory, divided by current assets. D) cash on hand divided by current liabilities. E) current liabilities divided by current assets. Answer: B Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Short-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation
3 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6) The quick ratio is measured as: A) current assets divided by current liabilities. B) cash on hand plus current liabilities, divided by current assets. C) current liabilities divided by current assets, plus inventory. D) current assets minus inventory, divided by current liabilities. E) current assets minus inventory minus current liabilities. Answer: D Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Short-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 7) Ratios that measure a firm's financial leverage are known as ________ ratios. A) asset management B) long-term solvency C) short-term solvency D) profitability E) market value Answer: B Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Long-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 8) The debt-equity ratio is measured as: A) total equity divided by long-term debt. B) total equity divided by total debt. C) total debt divided by total equity. D) long-term debt divided by total equity. E) total assets minus total debt, divided by total equity. Answer: C Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Long-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation
4 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9) The equity multiplier is measured as total: A) equity divided by total assets. B) equity plus total debt. C) assets minus total equity, divided by total assets. D) assets plus total equity, divided by total debt. E) assets divided by total equity. Answer: E Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Long-term solvency ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 10) Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios. A) asset management B) long-term solvency C) short-term solvency D) profitability E) market value Answer: A Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Asset management ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 11) The inventory turnover ratio is measured as: A) sales divided by inventory. B) inventory times total sales. C) cost of goods sold divided by inventory. D) inventory divided by cost of goods sold. E) inventory divided by sales. Answer: C Difficulty: 1 Easy Section: 3.2 Ratio Analysis Topic: Asset management ratios Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation