Take our DuPont equation quiz to check out your knowledge of accounting ratios used in mdct.ru.

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## 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 mdct.ru Quiz

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

- Quiz 43: Cash Flow Classification Quiz
- Quiz 37: Debit Credit In Accounting Quiz
- Quiz 62: Costs Included in Inventory
- Quiz 3: Debits and Credits Quiz

Quiz 25: DuPont Equation Quiz December 14th, 2016