Quiz31

What is the role of accounting in an efficient market?   Is it worth investing the time and money to beat the market?  Does it help to conduct financial statement analysis?  Should market be timed?

Which of the following financial statements would be most useful if an analyst wants to know the profitability of a​ company?   A. balance sheet   B. statement of cash flows   C. statement of retained earnings   D. income statement

What is the financial system. And what the markets that the financial system likely includes. Briefly describe the distinction between physical and financial capital. What use does the existence of a stock market service to the manager of a firm?

How can processes, policies and controls related to a company’s finance and investment cycle affect the company’s cash flow, audit opinion, market share and stock price?

n analyzing a company’s financial statements, which financial statement would a potential investor primarily use to assess the company’s liquidity and financial flexibility?   a. Income statement b. Statement of retained earnings c. Statement of cash flows d. Statement of financial position

1. What is an investor’s objective in financial statement analysis? a. To determine if the firm is risky b. To determine the stability of earnings. c. To determine changes necessary to improve future performance d. To determine whether or not an investment is warranted by estimating a company’s future earnings stream   2. The current ratio isa. calculated by dividing current liabilities by current assets. b. used to evaluate a company's liquidity and short-term debt paying ability c. used to evaluate a company's solvency and long-term debt paying ability. d. calculated by subtracting current liabilities from current assets.

Describe why an Investor would use Profitability Ratio’s? What are the following ratio's measuring (i) Return on Assets, (ii) Return on Equity, (iii) Profit Margin. Describe why a CEO would use Activity Ratio’s? What are the following ratio’s measuring (i) Days Receivables Outstanding, (ii) Inventory Turnover. Describe why a Bank would use Solvency Ratio’s? What are the following ratio’s measuring (i) Current Ratio, (ii) Acid-Test, (iii) Debt Ratio, (iv) Debt to Equity Ratio, Times Interest Earned ratio

How important do you think accounting information and financial statements are to stockpricing in the current era?

What is the correct option?

How would you relate the role of financial managers, role of financial markets and role of investors?