#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 ROI stand for in finance?
Rate of Interest
Return on Investment
Revenue of Income
Risk of Investment
#3
What is the purpose of the income statement?
To show a company's financial position at a specific point in time
To provide a summary of a company's revenues and expenses over a period
To track cash inflows and outflows
To calculate return on investment
#4
Which financial metric measures a company's efficiency in using its assets to generate revenue?
Debt-to-Equity Ratio
Return on Assets (ROA)
Current Ratio
Gross Profit Margin
#5
Which financial ratio measures a company's ability to meet short-term liabilities with its short-term assets?
Debt-to-Equity Ratio
Current Ratio
Return on Equity (ROE)
Gross Profit Margin
#6
What is the formula for calculating gross profit margin?
(Revenue - Cost of Goods Sold) / Revenue
(Revenue - Operating Expenses) / Revenue
(Net Income - Dividends) / Total Assets
(Gross Profit - Operating Expenses) / Revenue
#7
Which of the following represents a liability in accounting?
Inventory
Accounts receivable
Accounts payable
Equipment
#8
What is the formula for calculating the debt-to-equity ratio?
Total debt / Total equity
Total equity / Total assets
Total debt / Net income
Total assets / Total equity
#9
What does the term 'EPS' stand for in finance?
Earnings Per Share
Equity Profit Share
Effective Portfolio Strategy
Expense Per Sale
#10
Which financial statement shows changes in equity accounts over a specific period?
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#11
Which financial statement provides details about a company's cash inflows and outflows from operating, investing, and financing activities?
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#12
What does the term 'EBIT' stand for in finance?
Earnings Before Interest and Taxes
Earnings Before Interest and Debt
Earnings Before Income and Taxes
Earnings Before Income and Debt
#13
In finance, what does the term 'EBITDA' stand for?
Earnings Before Income Tax, Depreciation, and Amortization
Earnings Before Interest and Taxes, Depreciation, and Amortization
Earnings Before Interest and Taxes, Debt, and Amortization
Earnings Before Income Tax, Debt, and Amortization
#14
What is the formula for calculating free cash flow?
Net income / Total equity
Net income + Depreciation
Operating cash flow - Capital expenditures
Net income / Total assets
#15
What does the DuPont analysis evaluate?
Profitability
Liquidity
Solvency
Return on Equity (ROE)
#16
What does the term 'liquidity' refer to in finance?
The ease of converting assets into cash without significant loss
The rate at which an investment grows over time
The risk associated with an investment
The ability of a company to meet its long-term obligations
#17
Which financial metric measures a company's efficiency in managing its inventory?
Return on Equity (ROE)
Inventory Turnover Ratio
Gross Profit Margin
Debt-to-Equity Ratio