FIM PREGUNTAS EXAMEN

Which ratio measures a company's ability to meet short-term obligations?. Debt-to-Equity Ratio. Return on Equity. Current Ratio. Price-Earnings Ratio.

The formula for the Quick Ratio is: (CA + Inventory) / CL. (CA – Inventory) / CL. CA / Total Assets. Fixed Assets / CL.

A high inventory turnover ratio indicates: Efficient inventory management. Excess inventory. Poor sales performance. Decline in liquidity.

Which ratio represents operating profitability?. Net Profit Margin. Operating Profit Margin. Gross Profit Margin. Return on Assets.

If Net Income = €100,000 and Equity = €500,000, ROE is: 10%. 20%. 25%. 5%.

The Debt-to-Equity ratio indicates: Ability to pay current liabilities. Asset efficiency. Financial leverage and capital structure. Profitability.

Break-Even Point occurs when: Fixed cost = total cost. Total cost = variable cost. Total revenue = total cost. Contribution margin = zero.

Break-Even Point formula in units: Fixed Cost / Variable Cost. Fixed Cost / (Selling Price – Variable Cost). (FC + VC) / SP. Total Cost / SP.

If selling price increases (costs constant), BEP will: Decrease. Increase. Stay unchanged. Depend on fixed cost.

Margin of Safety (MOS) measures: Total fixed cost. Difference between fixed & variable cost. How much sales can fall before break-even. Gross profit margin.