Take our DuPont equation quiz to check out your knowledge of accounting ratios used in double entry bookkeeping.
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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 60: Straight Line Method of Depreciation
- Quiz 5: Basic Accounting Principles Quiz
- Quiz 51: Assets Liabilities Equity
- Quiz 16: Accounting Equation Problems Quiz
Quiz 25: DuPont Equation Quiz December 14th, 2016