INSTURCTION
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1. Which of the following would not improve the current ratio?
2. A company can improve (lower) its debt-to-total asset ratio by doing which of the following?
3. In conducting a common-size analysis every balance sheet item is divided by ...... and every income statement is divided by ....
4. Which group of ratios measure how effectively the firm is using its assets?
5. Which two of the statements below are correct?
I. Bank overdrafts are repayable on demand
II. A finance lease transfers virtually all the risks and rewards of owning the leased asset to the lessee
III. Preference dividends are paid before loan interest is paid
IV. Recourse factoring involves the factor assuming responsibility for bad debts
6. Which of the following basic decisions in business finance deals with how to spend funds?
7. Which of the following is not a type of bond?
8. All the following are cost incurred in selling goods and services on credit except
9. All the following are dimensions of finance companies, except ...
10. Which of the following is not a long-term source of finance?
11. The method of calculating return on assets which highlights the importance of sales, profit margin and asset turnover is known as ...
12. Sey Limited had sales of GHS10 million, operating income of GHS3 million; after-tax income of GHS1 million; assets of GHS8 million; Shareholder's equity of GHS5 million; and a total debt of GHS3 million. What is Sey's profit margin?
13. Debentures can best be described as a form of ....
14. A form of service offered by a financial institution taking over the sales ledger of a business is referred to as
15. The following are basic decisions in business finance, except ...
16. Preference share is also known as .... security.
17. All the following factors influence business financing decisions, except ...
18. The acquisition and usage of funds to achieve the objectives of a firm is referred to as
19. Statement 1: The after-tax profit margin represents operating income divided by sales.
Statement 2: Return on assets can be stated as net income/sales times sales/total assets.
20. Which of the following ratios measure the ability of a firm to earn an adequate return on sales, total assets and invested capital?
