BAR: FS Analysis: Remaining Test Mistakes Flashcards
Gross Profit
((Sales - COGS)/Sales)*100
Gross Profit Margin Ratio
Gross Profit/Net Sales
Operating Profit Margin Ratio
Operating Profit (EBIT)/Net Sales
Net Profit Margin Ratio (Return on Sales)
Net Profit/Net Sales
The expected return of a portfolio is measured by the…
Beta (Note: Beta is a measure of variability)
Effective Annual Percentage Rate
[1 + (stated rate/# of periods)]^2 -1
Fixed Asset Turnover Ratio
Sales/Fixed assets @ book value
4 Types of Data Analytics
Descriptive, Diagnostic, Predictive, Prescriptive
Descriptive Data Analytics
identify previously unknown patterns/trends (if any) through the analysis of historical data
Diagnostic Data Analytics
identify the source/cause of the pattern identified through descriptive analytics
Predictive Data Analytics
forecast trends/patterns based on historical and current facts
Prescriptive Data Analytics
predict outcomes and determine the best course of action going forward
Where do accrued salaries fall on the balance sheet?
Current Liabilities
Average days sales in inventory
365 divided by average inventory
What is an advantage of the accounting rate of return method of evaluating investment returns?
The technique corresponds to the measure that is often used to evaluate performance.
Data Governance
- It is difficult to measure the benefits of data governance
- Managing changes in organizational data workflows is complex and difficult
- The multiple and potentially conflicting demands of data ownership regulation is best addressed by a coordinated organizational approach
What is a critical success factor in data mining a large data store?
Pattern recognition
The profitability index is a variation on which of the following capital budgeting models?
Internal rate of return
What happens when receivables are factored?
The receivables would be sold and AR turnover would be increased
Formula for Direct Material Quantity Variance
(Standard quantity x Standard price) - (Actual quantity x Standard price)
Net Income
Sales - COGS - Expenses
Times interest earned ratio
Earnings before interest and taxes / interest expense
Using a spreadsheet is a good choice for an accounting application when
The application is not critical to the accounting system and does not include sensitive data
Economic Concept of Normal Profit
Revenue - Explicit Expenses greater than or equal to 0
In regression analysis the coefficient of determination measures
goodness of fit
