Which of the following are the most significant influences on a company's gross profit?
A. Product price and cost of operations
B. Cost of goods sold and operating expenses
C. Operating and non-operating expenses
D. Product price and cost of goods sold
Which financial ratio is best suited to determine if a company's credit granting function is well managed?
Which financial ratio is best suited to determine if a company's credit granting function is well managed?
a, quick ratio
b. current ratio
c. receivables days
d. working asset ratio
All of the following are characteristics of an income statement except?
a. measures financial activity at a point in time
b. shows sales (or revenues) for a measured period
C. calculated profit remianing after expenses are deducted from revenues
d. includes expenses incurred for a period of time
Which financial ratio is used to analyze a company's ability to control its selling, general and administrative expenses?
a. operating expense %
b. overhead expense%
c. operating profit margin
d. gross profit margin
company A's debt service coverage ratio went from 1.45 in Year 1 to 1.1 in Year 2. The company has only one loan, a term loan made in Year 1. All of the following would help explain the reduction in debt service coverage
EXCEPT:
a. net income (adjusted for depreciation, amortization and interest expense) fell in year 2
b. the interest rate on the loan is variable, and rates increased in year 2
c. company A reduced the amount of dividends paid to its woner in year 2
d. the loan was interest-only in year 1, starting principal payments in year 2
in most industries, revenues are recognized:
a. when the order for goods is received
b. after the products are inspected by the buyer
c. when the goods are shipped
d. when payment arrives at the sellers place of business