BUSINESS FINANCE QUIZ

NAME: ____________________________________ DATE:_____________________ SCORE:___________

Write ROE for Return on Equity OPM for Operating Profit Margin
ROA for Return on Asset NPM for Net Profit Margin
GRM for Gross Profit Margin

Where are the following equations used?

_______________ 1. (Net Income / Stockholders’ Equity) x 100%

_______________ 2. (Net Income / Sales) x 100%
_______________ 3. (Operating Income / Sales) x 100%
_______________ 4. (Operating Income / Total Assets) x 100%
_______________ 5. (Gross Profit / Sales) x 100%

What will you compute for the following types of problem?

_______________ 6. Did the company earn from its assets in 2015?

_______________ 7. How much income does the company generate from its sales?
_______________ 8. Does the company earn from its main operations?
_______________ 9. Is it better for the investor to put his money in the company than in other investment
products?
_______________ 10. Does the company generate income even after the expenses from cost of goods
sold?

BUSINESS FINANCE QUIZ

NAME: ____________________________________ DATE:_____________________ SCORE:___________

Write ROE for Return on Equity OPM for Operating Profit Margin
ROA for Return on Asset NPM for Net Profit Margin
GRM for Gross Profit Margin

Where are the following equations used?

_______________ 1. (Net Income / Stockholders’ Equity) x 100%

_______________ 2. (Net Income / Sales) x 100%
_______________ 3. (Operating Income / Sales) x 100%
_______________ 4. (Operating Income / Total Assets) x 100%
_______________ 5. (Gross Profit / Sales) x 100%

What will you compute for the following types of problem?

_______________ 6. Did the company earn from its assets in 2015?

_______________ 7. How much income does the company generate from its sales?
_______________ 8. Does the company earn from its main operations?
_______________ 9. Is it better for the investor to put his money in the company than in other investment
products?
_______________ 10. Does the company generate income even after the expenses from cost of goods
sold?