#1
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#2
What does the income statement primarily show?
Cash inflows and outflows
Changes in equity
Revenue and expenses
Assets and liabilities
#3
What is the purpose of analyzing personal financial statements?
To track income and expenses for tax purposes
To evaluate financial health and make informed decisions
To assess investment opportunities in the stock market
To determine eligibility for government assistance programs
#4
Which of the following is an example of an asset?
Credit card debt
Mortgage payment
Savings account
Utility bill
#5
What is the purpose of a personal budget?
To track expenses only
To track income only
To track both income and expenses
To track investments
#6
Which of the following is a liquidity ratio?
Return on investment (ROI)
Debt-to-equity ratio
Current ratio
Earnings per share (EPS)
#7
What does the debt-to-equity ratio measure?
The company's ability to cover its short-term liabilities
The proportion of debt financing relative to equity financing
The efficiency of asset management
The profitability of the company
#8
What is the formula for calculating the current ratio?
Current assets / Current liabilities
Total assets / Total liabilities
Net income / Total assets
Total liabilities / Total equity
#9
Which financial statement reports changes in a company's retained earnings over a specific period?
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#10
What does net worth represent in personal finance?
Total income earned in a year
Total value of assets minus liabilities
Total amount spent on expenses
Total amount saved in a retirement account
#11
Which financial statement provides information about a company's sources and uses of cash over a specific period?
Balance sheet
Income statement
Cash flow statement
Statement of retained earnings
#12
What does the quick ratio measure?
The company's ability to cover its short-term liabilities with its most liquid assets
The company's ability to generate profit from its operations
The company's efficiency in managing its inventory
The company's ability to meet long-term debt obligations
#13
Which of the following is not a component of the cash flow statement?
Operating activities
Investing activities
Financing activities
Non-operating activities
#14
What does the debt ratio indicate?
The proportion of assets financed by equity
The company's ability to generate profit from its operations
The proportion of debt relative to the company's assets
The company's ability to cover short-term liabilities with its most liquid assets
#15
What is the formula for calculating net worth?
Total assets - Total liabilities
Total assets / Total liabilities
Total income - Total expenses
Total income + Total expenses