#1
Which of the following is an asset?
Accounts Payable
Inventory
Accumulated Depreciation
Common Stock
#2
Which financial statement reports a company's revenues and expenses?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#3
Which of the following is an example of an intangible asset?
Inventory
Land
Patent
Accounts Receivable
#4
Which of the following is a liability?
Accounts Receivable
Equipment
Common Stock
Accounts Payable
#5
Which financial statement reports a company's financial position at a specific point in time?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#6
What is the primary purpose of the Balance Sheet?
To report a company's net income
To report a company's cash flows
To report a company's financial position at a specific point in time
To report a company's revenues and expenses
#7
Which of the following is considered a contra account?
Accounts Receivable
Prepaid Expenses
Accumulated Depreciation
Common Stock
#8
Which financial statement is used to determine a company's ability to generate cash?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#9
What is the formula for calculating Gross Profit?
Net Sales - Cost of Goods Sold
Gross Sales - Selling Expenses
Net Income - Operating Expenses
Gross Profit Margin / Net Sales
#10
What is the purpose of the Statement of Retained Earnings?
To report a company's cash flows
To report a company's financial position at a specific point in time
To report changes in a company's retained earnings over a period
To report a company's revenues and expenses
#11
What does the Statement of Cash Flows report?
A company's revenues and expenses
A company's cash inflows and outflows
A company's financial position at a specific point in time
A company's net income
#12
Which financial statement reflects changes in a company's retained earnings over a period?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#13
What is the formula for Return on Assets (ROA)?
(Net Income - Preferred Dividends) / Average Total Assets
Net Income / Total Assets
Net Income / Average Total Assets
(Net Income - Preferred Dividends) / Total Assets
#14
What does the Gross Profit Margin measure?
A company's ability to pay off its short-term liabilities
A company's operating efficiency
The percentage of each sales dollar that represents profit
A company's overall profitability
#15
What does the Current Ratio measure?
A company's liquidity and ability to cover short-term liabilities with short-term assets
A company's ability to generate profit from its operating activities
A company's efficiency in managing its inventory
A company's ability to pay off its long-term debt