BAR: FS Analysis: Remaining Test Mistakes

Question 1

Gross Profit

Answer 1

((Sales - COGS)/Sales)*100

Question 2

Gross Profit Margin Ratio

Answer 2

Gross Profit/Net Sales

Question 3

Operating Profit Margin Ratio

Answer 3

Operating Profit (EBIT)/Net Sales

Question 4

Net Profit Margin Ratio (Return on Sales)

Answer 4

Net Profit/Net Sales

Question 5

The expected return of a portfolio is measured by the…

Answer 5

Beta (Note: Beta is a measure of variability)

Question 6

Effective Annual Percentage Rate

Answer 6

[1 + (stated rate/# of periods)]^2 -1

Question 7

Fixed Asset Turnover Ratio

Answer 7

Sales/Fixed assets @ book value

Question 8

4 Types of Data Analytics

Answer 8

Descriptive, Diagnostic, Predictive, Prescriptive

Question 9

Descriptive Data Analytics

Answer 9

identify previously unknown patterns/trends (if any) through the analysis of historical data

Question 10

Diagnostic Data Analytics

Answer 10

identify the source/cause of the pattern identified through descriptive analytics

Question 11

Predictive Data Analytics

Answer 11

forecast trends/patterns based on historical and current facts

Question 12

Prescriptive Data Analytics

Answer 12

predict outcomes and determine the best course of action going forward

Question 13

Where do accrued salaries fall on the balance sheet?

Answer 13

Current Liabilities

Question 14

Average days sales in inventory

Answer 14

365 divided by average inventory

Question 15

What is an advantage of the accounting rate of return method of evaluating investment returns?

Answer 15

The technique corresponds to the measure that is often used to evaluate performance.

Question 16

Data Governance

Answer 16

• 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

Question 17

What is a critical success factor in data mining a large data store?

Answer 17

Pattern recognition

Question 18

The profitability index is a variation on which of the following capital budgeting models?

Answer 18

Internal rate of return

Question 19

What happens when receivables are factored?

Answer 19

The receivables would be sold and AR turnover would be increased

Question 20

Formula for Direct Material Quantity Variance

Answer 20

(Standard quantity x Standard price) - (Actual quantity x Standard price)

Question 21

Net Income

Answer 21

Sales - COGS - Expenses

Question 22

Times interest earned ratio

Answer 22

Earnings before interest and taxes / interest expense

Question 23

Using a spreadsheet is a good choice for an accounting application when

Answer 23

The application is not critical to the accounting system and does not include sensitive data

Question 24

Economic Concept of Normal Profit

Answer 24

Revenue - Explicit Expenses greater than or equal to 0

Question 25

In regression analysis the coefficient of determination measures

Answer 25

goodness of fit