Purchase cost of assets over its useful life is classified as_________?

Related Mcqs:

1. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

2. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

3. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

4. The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?

   A. 0.0007
   B. 0.0714
   C. 0.05 times
   D. 7.15 times

5. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

   A. 0.025
   B. 0.081
   C. 0.004
   D. 4 times

6. The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?

   A. 22275
   B. 0.1571
   C. 0.01925
   D. 1.925 times

7. Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?

   A. Return ratios
   B. Market value ratios
   C. Marginal ratios
   D. Equity ratios

8. A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?

   A. Efficient money hypothesis
   B. Efficient market hypothesis
   C. Inefficient market hypothesis
   D. Inefficient money hypothesis

9. An annual estimated cost of assets uses up every year is included__________?

   A. Depreciation and amortization
   B. Net sales
   C. Net profit
   D. Net income

10. If a firm uses cash to purchase inventory, its quick ratio will?

    A. Increase
    B. Decrease
    C. Remain unaffected
    D. Become zero