Take our DuPont equation quiz to check out your knowledge of accounting ratios used in double entry bookkeeping.

## Not Ready for the DuPont Equation Quiz?

If you need a refresher course on this topic you can view our DuPont analysis tutorial here.

## Start the DuPont Equation Quiz

Click on an answer to reveal whether its Right! or Wrong

1. Given the following information for a business:

Asset turnover = 3.50

Equity multiplier = 1.00

Return on equity = 30%

Using the Dupont analysis what is the net profit margin?

Asset turnover = 3.50

Equity multiplier = 1.00

Return on equity = 30%

Using the Dupont analysis what is the net profit margin?

Wrong

Right!

2. Given the following information for a business:

Asset turnover = 0.57

Equity multiplier = 1.75

Net profit margin = 20%

Using the Dupont analysis what is the Return on equity (ROE)?

Asset turnover = 0.57

Equity multiplier = 1.75

Net profit margin = 20%

Using the Dupont analysis what is the Return on equity (ROE)?

Right!

Wrong

3. Given the following information for a business:

Net profit margin = 10%

Equity multiplier = 2.50

Return on equity = 16.67%

Using the Dupont analysis what is the asset turnover?

Net profit margin = 10%

Equity multiplier = 2.50

Return on equity = 16.67%

Using the Dupont analysis what is the asset turnover?

Right!

Wrong

4. Given the following information for a business:

Net income = 20,000

Revenue = 200,000

Equity = 120,000

Assets = 300,000

What is the net profit margin?

Net income = 20,000

Revenue = 200,000

Equity = 120,000

Assets = 300,000

What is the net profit margin?

Wrong

Right!

5. Given the following information for a business:

Net income = 30,000

Revenue = 150,000

Equity = 250,000

Assets = 140,000

What is the asset turnover?

Net income = 30,000

Revenue = 150,000

Equity = 250,000

Assets = 140,000

What is the asset turnover?

Wrong

Right!

6. Given the following information for a business:

Net income = 63,000

Revenue = 600,000

Equity = 210,000

Assets = 630,000

What is the equity multiplier?

Net income = 63,000

Revenue = 600,000

Equity = 210,000

Assets = 630,000

What is the equity multiplier?

Right!

Wrong

7. In the DuPont anlaysis return on equity (ROE) is equal to

(Net income / Revenue) x (Revenue / Assets) x (?)

(Net income / Revenue) x (Revenue / Assets) x (?)

Wrong

Right!

8. In the extended DuPont analysis return on equity (ROE) is equal to

Operating margin x Asset turnover x Financial cost ratio x ? x Tax effect ratio

Operating margin x Asset turnover x Financial cost ratio x ? x Tax effect ratio

Right!

Wrong

9. What is the missing item in this formula?

Return on Equity (ROE) = ? x Equity multiplier

Return on Equity (ROE) = ? x Equity multiplier

Right!

Wrong

10. In the extended DuPont analysis formula below, what is the missing item?

ROE = (Operating income / Revenue) x (Revenue / Assets) x (Income before tax / Operating income) x (Assets / Equity) x (Net income / Income before tax)

ROE = (Operating income / Revenue) x (Revenue / Assets) x (Income before tax / Operating income) x (Assets / Equity) x (Net income / Income before tax)

Right!

Wrong

## Try Another Double Entry Bookkeeping Quiz

The DuPont equation quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.

- Quiz 6: Debit and Credit Quiz
- Quiz 3: Debits and Credits Quiz
- Quiz 32: Inventory – Lower of Cost or Market Rule
- Quiz 21: Basics of Bookkeeping Quiz

Quiz 25: DuPont Equation Quiz December 14th, 2016