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Analysis of Financial Statements Multiple Choice Questions (MCQs) PDF Download - 1

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Analysis of Financial Statements MCQ with Answers PDF Download: Quiz 1

MCQ: 1

A technique that is used in comparative analysis of financial statement is

  1. graphical analysis
  2. preference analysis
  3. common size analysis
  4. returning analysis
MCQ: 2

The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be

  1. 0.00114
  2. 0.114
  3. 0.12
  4. 0.12
MCQ: 3

The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be

  1. 8.57
  2. 0.0857
  3. 0.11
  4. 0.11
MCQ: 4

The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be

  1. 0.24
  2. 4.16
  3. 0.0416
  4. 0.24
MCQ: 5

The low price for earnings ratio is the result of

  1. low riskier firms
  2. high riskier firms
  3. low dividends paid
  4. high marginal rate

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