Tying Ratios Together Multiple Choice Questions with Answers – PDF Download

MCQ 1: The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be:

1. 0.2673
2. 26.73
3. 0.094
4. 0.4

MCQ 2: The total assets divided by common equity is a formula uses for calculating:

1. equity multiplier
2. graphical multiplier
3. turnover multiplier
4. stock multiplier

MCQ 3: The profit margin multiply assets turnover multiply equity multiplier is used to calculate:

1. return on turnover
2. return on stock
3. return on assets
4. return on equity

MCQ 4: An equation in which total assets are multiplied to profit margin is classified as:

1. du DuPont equation
2. turnover equation
3. preference equation
4. common equation

MCQ 5: The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be:

1. 22275
2. 0.1571
3. 0.01925
4. 1.925