The document discusses various financial terms and concepts including earnings per share, retained earnings, tax rates, profitability ratios, net income, liquidity ratios, and operating profits. It provides examples of calculations for earnings, net profits, tax rates, and retained earnings. Several questions test understanding of key financial markets, regulations, and documents such as investment banks, the money market, Securities Acts, and annual reports.
The document discusses various financial terms and concepts including earnings per share, retained earnings, tax rates, profitability ratios, net income, liquidity ratios, and operating profits. It provides examples of calculations for earnings, net profits, tax rates, and retained earnings. Several questions test understanding of key financial markets, regulations, and documents such as investment banks, the money market, Securities Acts, and annual reports.
The document discusses various financial terms and concepts including earnings per share, retained earnings, tax rates, profitability ratios, net income, liquidity ratios, and operating profits. It provides examples of calculations for earnings, net profits, tax rates, and retained earnings. Several questions test understanding of key financial markets, regulations, and documents such as investment banks, the money market, Securities Acts, and annual reports.
The document discusses various financial terms and concepts including earnings per share, retained earnings, tax rates, profitability ratios, net income, liquidity ratios, and operating profits. It provides examples of calculations for earnings, net profits, tax rates, and retained earnings. Several questions test understanding of key financial markets, regulations, and documents such as investment banks, the money market, Securities Acts, and annual reports.
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1.
The amount earned during the accounting period on each outstanding
share of common stock is called: earnings per share 2. Managing the firms assets includes all of the following EXCEPT: notes payable 3. Retained earnings on the balance sheet represents the: cumulative total of all earnings reinvested in the firm 4. The key participants in financial transactions are individuals business, and governments. Individuals are net __________ of funds, and businesses are net ___________ of funds: suppliers; demanders 5. Which of the following serve as intermediaries channeling the savings of individuals, business and governments into loans and investments? Financial Institutions 6. The __________ market is where securities are initially issued and the _____ market is where pre-owned securities (not new issues) are traded. Primary; secondary 7. All of the following are examples of organized stock exchanges EXCEPT: over the counter 8. Jennings, Inc. has a tax liability of $170,000 on pretax income of $500,000. What is the average tax rate for Jennings, Inc.? 34 percent 9. ________ is where the firms ratio values are compared to those of a key competitor or group of competitors, primarily to identify areas for improvement. benchmarking 10. The ____________ ratios are primarily measures of return. Profitability 11. Operating profits are defined as: gross profits minus operating expenses 12. Net profits after taxes are defined as: 13. The two basic measures of liquidity are: current ratio and quick ratio 14. All of the following are examples of current assets EXCEPT: accruals 15. The _________ ratio may indicate the firm is experiencing stock outs and lost sales. Inventory 16. The ________ ratio may indicate poor collections procedures or a lax credit policy. Inventory turnover 17. A firm had the following accounts and financial data for 2005 Sales revenue $3060 Accounts receivable Interest expense 126 Total operating expense
500
600
Cost of goods sold
$1,800 Preferred stock dividends Tax rate 40% Number of common shares 1,000
18
outstanding Accounts payable 240 The firms net profit after taxes for 2005 was __________ 302.40 18. Firm ABC had operating profits of $100,000, taxes of $17,000, interest expense of $34,000 and preferred dividends of $5,000. What was the firms net income available to common shareholders? 44,000 19. A corporations had year end 2004 and 2005 retained earnings balances of $32,000 and $400,000, respectively. The firm reported net profits after taxes of $100,000 in 2005. The firm paid dividends in 2005 of: $20,000 20. ? 21. Which of the following assists companies in raising capital, advise firms in major transactions, mergers or financial restructuring, and engage in trading and market making activities? Investment banks 22. By definition, the money market involves the buying and selling of _______. Short-term securities 23. Which of the following acts regulate the primary market in which securities are originally issued to the public? The Securities Act of 1933 24. A firms annual stockholders report __________. Summarizes and documents the firms financial activities during the past year 25. Operating profit is known as _________. Earnings before interest and taxes
Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following inform... - HomeworkLib
