#1
Which of the following is a financial statement that shows a company's revenues and expenses over a period of time?
Balance sheet
Income statement
Cash flow statement
Statement of retained earnings
#2
What does ROI stand for in finance?
Return on Investment
Rate of Interest
Revenue Over Income
Risk of Investment
#3
Which of the following is a measure of a company's ability to pay off its short-term obligations?
Quick ratio
Debt-to-Equity ratio
Return on Investment
Earnings per Share
#4
Which of the following is NOT a type of financial ratio?
Liquidity ratio
Profitability ratio
Inventory ratio
Solvency ratio
#5
Which financial statement represents 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
#6
Which of the following is NOT a measure of investment risk?
Standard deviation
Sharpe ratio
Beta coefficient
Earnings per share
#7
What is the term for the rate at which the general level of prices for goods and services is rising?
Deflation
Stagnation
Inflation
Depreciation
#8
What is the primary goal of financial risk management?
To eliminate all risks
To minimize risks to an acceptable level
To take on as much risk as possible
To ignore risks
#9
Which of the following is NOT a type of financial risk?
Credit risk
Market risk
Operational risk
Production risk
#10
What is the formula to calculate the current ratio?
Current Assets / Current Liabilities
Total Assets / Total Liabilities
Current Assets - Current Liabilities
Total Assets - Total Liabilities
#11
What is the main purpose of diversification in investment?
To reduce risk by spreading investments across different assets
To concentrate investments in a single asset for higher returns
To increase risk by focusing on a particular industry
To avoid taxes on investment returns
#12
What is systematic risk also known as?
Market risk
Credit risk
Operational risk
Liquidity risk
#13
What is leverage in finance?
The ability to buy and sell securities quickly
The use of borrowed funds to increase the return on equity
The process of converting assets into cash
The measure of a company's profitability
#14
What does the term 'hedging' mean in finance?
Investing in high-risk securities
Reducing risk by taking offsetting positions
Selling securities short
Diversifying investments across various asset classes
#15
What does CAPM stand for in finance?
Cost Analysis and Profit Management
Capital Asset Pricing Model
Credit Assessment and Portfolio Management
Corporate Accounting and Performance Measurement
#16
What is the formula to calculate the net present value (NPV) of an investment?
Initial Investment / Discount Rate
Present Value of Cash Flows - Initial Investment
Future Value of Cash Flows - Initial Investment
Present Value of Cash Flows + Initial Investment
#17
What is the formula to calculate the earnings per share (EPS) of a company?
Net Income / Total Assets
Net Income / Shareholder's Equity
Net Income / Number of Outstanding Shares
Total Revenue / Total Expenses