Performance Measurement

1.How do you determine the total assets employed using total available assets and idle assets?

market capitalizationnet assets in usetotal assets on handequity of shareholders

2.What are the formal information systems within organizations called that guide the company’s learning and focus on critical strategic matters?

interactive control systembelief frameworksboundary frameworksdiagnostic monitoring systems

3.Which financial metric is calculated by deducting the rupee value of the required return on investment from the income?

4.The economic value added (EVA) approach is a particular technique used to determine which of the following?

5.What represents the after-tax average expense of the capital a company utilizes over the long term?

Weighted average cost of capitalEconomic value addedNet operating profit after taxNet earnings

6.What term describes an individual's drive to perform well for their own personal satisfaction?

7.Which financial metric is determined by dividing income by investment?

8.Given that the working capital amounts to $265,000 and current liabilities total $378,000, what is the value of the current assets?

$113,000$643,000$743,000$543,000

9.What term is used to describe the total amount of assets employed to produce income?

DuPont analysisrate of returninvestmentasset turnover

10.What is the result when you subtract working capital from current assets?

11.Given current assets of $250,000 and current liabilities of $135,500, what is the value of the working capital?

$3,855,500$314,500$214,500$114,500

12.What financial metric is determined by subtracting current liabilities from current assets?

cost of capital opportunitynet working capitalaggregate long-term assetsaverage weighted cost of capital

13.Which system within an organization defines the company's purpose, mission, and fundamental values?

interactive management systembelief systemboundary management systemdiagnostic management system

14.Given an operating income of $5,650,000 and total revenue of $68,558,000, what is the return on sales ratio?

15.Which metric is obtained by dividing operating income by total revenues?

residual profitafter-tax operating returnoperating profit margininvestment return

16.Given a required rate of return of 13%, an operating income of $375,000, and a total investment amounting to $2,650,000, what is the residual income?

$30,500$20,500$25,500$32,500

17.Which term is another name for the return on investment?

accrual accounting return rateaccounting return ratenominal return rateboth A and B

18.What is the name of the organizational system that sets the limits for acceptable behavior and establishes the code of conduct?

system for interactive controlsystem based on organizational beliefssystem that defines boundariessystem for diagnostic monitoring

19.What is the result when you add working capital to current liabilities?

notional assetsleftover assetscurrent assetstoken assets