Question :
11) Which of the following one of Michael Porter’s five : 1222584
11) Which of the following is one of Michael Porter’s five competitive forces?
A) the bargaining power of suppliers
B) the bargaining power of the government
C) the threat of industrial slowdown
D) the threat of technological obsolescence
12) Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis?
A) An internal comparison reveals unexpected relationships within a company, whereas an external comparison reveals the absence of expected relationships outside a company.
B) An internal comparison involves comparing a company with the industry as a whole, whereas an external comparison involves comparing a company’s current performance with its past experience.
C) An internal comparison is done by an accountant or auditor, whereas an external comparison is done by a forensic accountant.
D) An internal comparison allows the examination of changes within a company over time, whereas an external comparison reveals the company’s relative performance and financial standing.
13) Which of the following is a difference between a forensic accountant and an accountant or auditor?
A) A forensic accountant works with complete information, whereas an accountant or auditor works with incomplete information.
B) A forensic accountant commonly works backward, whereas an accountant or auditor typically works forward.
C) A forensic accountant works with financial ratios, whereas an accountant or auditor works with internal reports.
D) A forensic accountant uses professional skepticism while conducting the analysis, whereas an accountant or auditor has a more open mindset.
14) Which of the following is true of a balance sheet?
A) It summarizes the performance of the organization over a specific period of time.
B) It supplements information provided by the income statement.
C) It shows the financial position of an organization on a specific date.
D) It explains some changes in the assets and liabilities of a company between two consecutive periods.
15) Which of the following is true of the compound annual growth rate?
A) It reflects average annual growth over a period of multiple years.
B) It reflects total annual growth over a period of multiple years.
C) It reflects average annual growth for a year as compared to the previous year.
D) It reflects total annual growth for a year as compared to the previous year.
16) Which of the following is the correct formula for calculating sustainable growth rate?
A) Sustainable growth rate = Return on sales × Return on equity
B) Sustainable growth rate = Retention ratio × Return on equity
C) Sustainable growth rate = Retention ratio × Return on assets
D) Sustainable growth rate = Return on sales × Return on assets
17) Blue Angel, Inc. generated sales of $420,000 in the year 2014. The accountant provided the following additional information:
A) 1.8%
B) 5%
C) 11.25%
D) 0.8%
18) Which of the following is a profitability ratio?
A) return on assets
B) earnings per share
C) price to earnings
D) dividend yield
19) Which of the following is the correct formula for calculating dividend yield?
A) Dividend yield = Book value per share / Dividends per share
B) Dividend yield = Dividends per share / Book value per share
C) Dividend yield = Dividends per share / Market value per share
D) Dividend yield = Market value per share / Dividends per share
20) Judith Corp. has current assets worth $50,000 and current liabilities worth $75,000. Current assets include inventory of $10,000. Calculate current ratio.
A) 1.500
B) 0.533
C) 0.625
D) 0.667
