FSA exam 1

Question 1

shows a company’s performance over a period of time

Answer 1

Incomes Statement

Question 2

Gross Profit / Sales

Answer 2

Gross Profit Margin

Question 3

ROE and ROA are expressed as a

Answer 3

Percentage

Question 4

Current operating assets

Answer 4

Accounts receivable
Unbilled revenues
Inventories
Prepaid expenses
deferred income tax assets

Question 5

Tax on operating profit

Answer 5

tax expense+(pretax net nonoperating expense*statutory tax rate)

Question 6

Current assets

Answer 6

accounts receivable
inventories
cash

Question 7

long term assets

Answer 7

PP&E
Equipment
Goodwill
Long term investments

Question 8

long-term liabilities

Answer 8

long-term debt

Question 9

financial leverage

Answer 9

Avg. Assets/Avg. Equity

Question 10

ROE(1)

Answer 10

Net income/Avg. Equity

Question 11

ROE(2)

Answer 11

ROA*Financial Leverage

Question 12

ROE(3)

Answer 12

(Net Income/Avg. Assets)*(Avg. Assets/Avg. Equity)

Question 13

Porters Value Chain primary

Answer 13

inbound logistics
operations
outbound logistics
marketing and sales
service

Question 14

SWOT negatives

Answer 14

Threats; Weaknesses

Question 15

SWOT positives

Answer 15

Opportunities; Strengths

Question 16

SWOT internal

Answer 16

strengths; weaknesses

Question 17

SWOT external

Answer 17

opportunities; threats