Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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How is the commercial margin
calculated?
a. | Commercial margin = Sales of merchandise x Cost of
merchandise sold | b. | Commercial margin
= Sales of merchandise/Cost of merchandise sold | c. | Commercial margin
= Sales of merchandise – Cost of merchandise sold | d. | Commercial margin = Cost of merchandise sold/Sales of merchandise
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2.
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What does EBITDA mean?
a. | Earnings before income tax, depletion and
amortization | b. | Exceptional
between income tax, depreciation and amortization | c. | Earnings before interests, taxes, depreciation and
amortization | d. | Earnings before
interests, taxes and depreciation of assets
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3.
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Which ratio can be used to measure the
vulnerability of a firm to a takeover?
a. | Net market value of
equity/EBITDA | b. | Net
income/EBITDA | c. | Total
assets/EBITDA | d. | Long-term
liabilities/EBITDA |
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4.
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How is the working capital
calculated?
a. | Working capital = Shareholders’ equity and
long-term debts – Fixed assets | b. | Working capital =
Fixed assets – Current assets | c. | Working capital =
Shareholders’ equity and long-term debts + Fixed assets | d. | Working capital = Fixed assets + Current assets
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5.
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Which of the following equations is
correct?
a. | Working capital – Working capital need = Net
cash | b. | Working capital/Working capital need = Net
cash | c. | Working capital + Working capital need = Net
cash | d. | Working capital x Working capital need = Net
cash |
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6.
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Which of the following types of financial structure
corresponds generally to a manufacturing company with a negative net cash?
(Note: WC = Working capital, WCN =
Working capital need, NC = Net cash)
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7.
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How is the interest coverage ratio
calculated?
a. | Interest coverage ratio = Operating income (before
interest expense and income taxes)/Interest expense | b. | Interest coverage ratio = Net income/Interest
expense | c. | Interest coverage ratio = Shareholders’
equity/Interest expense | d. | Interest coverage
ratio = Long-term debts/Interest expense
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8.
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What is calculated by the following formula: (Net
profit or loss for the period attributable to ordinary shareholders)/(Time-weighted average number of
ordinary shares outstanding during the period)?
a. | Basic earnings per share. | b. | Diluted earnings per share. | c. | Adjusted basic earnings per share. | d. | Adjusted diluted earnings per share.
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9.
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According to IAS 14, a business segment is a
distinguishable component of an entity that is engaged in providing an individual product or service
or a group of related products or services and that is subject to risks and returns that are
different from those of other business segments.
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10.
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Which type of accounts manipulation mainly consists
in a reduction of the variance of the profit?
a. | Creative accounting. | b. | Big bath accounting. | c. | Income
smoothing. | d. | Earnings
management. |
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