BF

Question 1

RETURN OF EQUITY

Answer 1

NET INCOME ÷ STOCKHOLDERS EQUITY × 100%

Question 2

RETURN OF ASSETS

Answer 2

OPERATING INCOME ÷ TOTAL ASSETS ×100%

Question 3

GROSS PROFIT MARGIN

Answer 3

gross profit ÷ sales x 100%

Question 4

OPERATING PROFIT MARGIN

Answer 4

operating income ÷ sales x 100%

Question 5

NET PROFIT MARGIN

Answer 5

Net income ÷ sales ×100%

Question 6

TOTAL ASSETS TURNOVER RATIO

Answer 6

net sales ÷ total asset

Question 7

FIXED ASSET TURNOVER RATIO

Answer 7

net sales ÷ ppe

Question 8

ACCOUNTS RECEIVABLE TURNOVER RATIO

Answer 8

Net sales ÷ Gross trade accounts receivable

Question 9

AVERAGE COLLECTION PERIOD

Answer 9

360 ÷ Gross trade accounts receivable ratio

Question 10

INVENTORY TURNOVER RATIO

Answer 10

Cost of sales ÷ inventories

Question 11

DAYS INVENTORIES

Answer 11

360÷ Inventory turnover ratio

Question 12

ACCOUNTS PAYABLE TURNOVER RATIO

Answer 12

Cost of sales ÷ Trade account payable

Question 13

DAYS PAYABLE

Answer 13

360 ÷ Accounts payable turnover ratio

Question 14

OPERATING CYCLE

Answer 14

Days inventories + Days receivable

Question 15

Cash Conversion Cycle

Answer 15

Operating cycle - days payable

Question 16

CURRENT RATIO

Answer 16

CURRENT ASSETS ÷ CURRENT LIABILITIES

Question 17

ACID TEST RATIO OR QUICK ASSET RATIO

Answer 17

(Cash + current accounts receivable+ short term marketable securities)/ current liabilities

Question 18

other formula for quick asset ratio

Answer 18

(Current assets - inventories )/ Current liabilities

Question 19

DEBT RATIO

Answer 19

Total liabilities ÷ total assets

Question 20

DEBT TO EQUITY RATIO

Answer 20

Total liabilities ÷ Equity

Question 21

Interest Coverage ratio

Answer 21

operating income ÷ interest income

Question 22

INTERPRETATION FOR ROE

Answer 22

For every ₱1 of owners equity, ___ was earned.

Question 23

INTERPRETATION FOR ROE

Answer 23

For every ₱1 of owners equity, __ was earned in (year).

Question 24

INTERPRETATION FOR ROA

Answer 24

the company enerated ____ operating income for every ₱1 of an asset in the company

Question 25

INTERPRETATION FOR GROSS PROFIT MARGIN

Answer 25

For every ₱1 of sales the company generates, it earns __ in gross profit

Question 26

INTERPRETATION FOR OPERATING PFORIT MARGIN

Answer 26

out of ₱1 net sales that the company generated in the year, the company earned __ after deducting the cost of sales and operating expenses

Question 27

INTERPRETATION FOR NET PROFIT MARGIN

Answer 27

The company earned __ for every ₱1 of net sales generated

Question 28

INTERPRETATION OF TOTAL ASSETS TURNOVER RATIO

Answer 28

For every ₱1 of assets the company has in the year, it was able to generate net sales of ___

Question 29

INTERPRETATION FOR FIXED ASSET TURNOVER RATIO

Answer 29

The company was able to generate __ net sales for every ₱1 of PPE that it has

Question 30

INTERPRETATION FOR ACCOUNTS RECEIVABLE TURNOVER RATIO and AVERAGE COLLECTION PERIOD

Answer 30

The company had an average of __ days collecting its accounts receivalbe

Question 31

INTERPRETATION FOR INVENTORY TURNOVER RATIO

Answer 31

the company took _days on average, to sell its inventories from the time they were bough

Question 32

INTERPRETATION FOR ACCOUNTS PAYABLE TURNOVER RATIO and DAYS PAYABLE

Answer 32

The average payment period of the company for its trade accounts payable was _days

Question 33

INTERPRETATION FOR CURRENT RATIO

Answer 33

for every ₱1 of current liabilities that the company has, it has _ current assests as of ...

Question 34

INTERPRETATION FOR ACID TEST RATIO OR QUICK ASSET RATIO

Answer 34

for every ₱1 current liability the company has, it has _ in quick asset

Question 35

INTERPRETATION FOR DEBT RATIO

Answer 35

if less than .50 it has less liabilities as comapred to stockholders equity

Question 36

INTERPRETATION OF DEBT TO EQUITY RATIO

Answer 36

(based on debt ratio) it is expected that its debt to equity is less.than one

Question 37

INTERPRETATION FOR INTEREST COVERAGE RATIO

Answer 37

_ means that the company has more than enough operating income to cover its interest expense.

Question 38

HORIZONTAL ANALYSIS

Answer 38

change since base period = (current year amount - base year amount) / base year amount % change = [ ( sales²⁰¹⁹- sales ²⁰¹⁸) ÷ sales ²⁰¹⁸,] × 100 %

Question 39

VERTICAL ANALYSIS

Answer 39

SFP= cash ÷ total assets × 100% SOPL= cost of sale ÷ net sales × 100%

Question 40

STATEMENT OF PROFIT OR LOSS

Answer 40

Revenue Cost of good sold (beg, inv. + pur - end inv) gross profit operating expense operating income Interest expense Income before taxes taxes Net income

Question 41

science and art of managing money

Answer 41

finance

Question 42

deals with managing individual expenses

Answer 42

personal finance

Question 43

managing the cash of a corporation

Answer 43

corporate finance

Question 44

managaing the cash and the finanacial respurces of a government entity

Answer 44

public finance

Question 45

the act of estimating revenue (in the form of their allowance) and exepenses over a period of time

Answer 45

bugeting

Question 46

(utilization of fund) allocating resources, usually money tith the expectation of geberating an income or profit

Answer 46

investment