Feedback Module two graded quiz - This quiz contributes 10% towards your final grade - Due 15th

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You submitted this quiz on Tue 7 Jul 2015 5:05 AM PDT. You got a score of 10.00 out of 10.00. However, you will not get credit for
it, since it was submitted past the deadline.

This quiz contributes 10% towards your final grade for this course.
There are 10 questions - Attempt all questions.
You can attempt this quiz two (2) times only. The highest score will be used towards your final grade.
Ensure you have watched all the lecture videos, done the practice quiz and other learning activities for Module 2 BEFORE doing
this quiz.

Question 1
Operating margin equals:

Your Answer

Operating income/Sales

Gross profit/Owners equity

Operating income/Cost of goods sold

Gross profit/Assets

Correct

Score

Explanatio

1.00

Correct

Total

1.00 / 1.00

Question 2
ROA equals:

Your Answer

Net income/[(average) BV of assets]

Correct

Score

Explanatio

1.00

Correct

Gross profit/Owners equity

Gross profit/assets

Net income/[(average) BV of equity]

Total

1.00 / 1.00

Question 3
Earnings per share equals:

Your Answer

Score

Explan

Gross profit/Assets

Net income/Average outstanding number of shares

1.00

Correct

Correc

Net income/Liabilities

Gross profit/Owners equity

Total

1.00 / 1.00

Question 4
What are the most often quoted and related financial ratios?

Your Answer

Earnings per share and Price/Earnings

Price/Earnings and gross margin

Earnings per share and Price/Sales

Correct

Score

Explanatio

1.00

Correct

Operating margin and gross margin

Total

1.00 / 1.00

Question 5
Debt-equity ratio equals:

Your Answer

Score

Explanation

1.00

Correct

Total debt/Total assets

Total equity/Total debt

Total assets/Total debt

Total debt/Total equity

Total

Question 6
The current ratio equals:

Correct

1.00 / 1.00

Your Answer

Current assets/Current liabilities

Correct

Score

Explanation

1.00

Correct

Total debt/Total equity

Gross profit/Sales

Equity/ Current liabilities

Total

1.00 / 1.00

Question 7
The quick ratio will always be equal to, or larger than, the cash ratio.

Your Answer

True

False

Correct

Score

Explanation

1.00

Correct

Total

1.00 / 1.00

Question 8
Debt is generally considered a cheaper form of funding than equity funding?

Your Answer

Score

Explanation

1.00

Correct

False

True

Correct

Total

1.00 / 1.00

Question 9
What do efficiency activity ratios capture?

Your Answer

The firms ability to manage current assets and current liabilities

Stock price movements

Score

Ex

The firms ability to meet short term liabilities

The firms ability to effectively use its assets in generating revenue

Correct

Total

1.00

Co

1.00 / 1.00

Question 10
Total asset turnover equals:

Your Answer

Score

Explanation

1.00

Correct

Gross profit/Sales

Total debt/Total equity

Current assets/Current liabilities

Sales/(average)Total assets

Total

Correct

1.00 / 1.00