#1
What is the formula for calculating simple interest?
Principal x Rate x Time
Principal x Rate / Time
(Principal + Rate) x Time
Principal / (Rate x Time)
#2
What does ROI stand for in finance?
Return on Investment
Risk of Inflation
Rate of Income
Revenue on Investment
#3
Which of the following is NOT a measure of central tendency?
#4
What does the acronym PE stand for in finance?
Profit Estimate
Price to Earnings
Portfolio Evaluation
Price Estimate
#5
Which financial statement shows a company's revenues and expenses over a period of time?
Balance Sheet
Statement of Cash Flows
Income Statement
Statement of Retained Earnings
#6
What is the formula to calculate compound interest annually?
P(1 + r/n)^nt
P(1 + r)^t
P(1 - r)^t
P(1 - r/n)^nt
#7
What is the present value of $10,000 received in 5 years if the discount rate is 8%?
$6,629.56
$7,260.15
$8,530.00
$9,680.20
#8
What is the formula to calculate the future value of an investment with compound interest?
P(1 + r)^t
P(1 + r/n)^nt
P(1 - r/n)^nt
P(1 - r)^t
#9
What is the formula for the debt-to-equity ratio?
Total Debt / Total Equity
Total Equity / Total Assets
Total Debt / Total Assets
Total Equity / Total Debt
#10
What is the formula for the current ratio?
Current Assets / Current Liabilities
Total Assets / Total Liabilities
Current Liabilities / Current Assets
Total Liabilities / Total Assets
#11
What does the term 'EBIT' stand for?
Earnings Before Interest and Taxes
Earnings Before Income and Tax
Earnings Beyond Income Tax
Earnings Before Interest and Tariffs
#12
What is the formula for the net present value (NPV) of a series of cash flows?
Σ(CF / (1 + r)^t)
Σ(CF x (1 + r)^t)
Σ(CF / r^t)
Σ(CF x r^t)
#13
Which of the following is a measure of a company's profitability relative to its equity?
Return on Assets (ROA)
Return on Equity (ROE)
Earnings Before Interest and Taxes (EBIT)
Earnings Per Share (EPS)
#14
Which financial ratio measures a company's ability to meet its short-term obligations with its most liquid assets?
Debt-to-Equity Ratio
Current Ratio
Quick Ratio
Return on Assets
#15
What is the formula for calculating the weighted average cost of capital (WACC)?
(Cost of Debt x Debt) + (Cost of Equity x Equity)
(Cost of Debt / Debt) + (Cost of Equity / Equity)
(Cost of Debt + Debt) x (Cost of Equity + Equity)
(Cost of Debt - Debt) / (Cost of Equity - Equity)