#1
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income statement
Balance sheet
Statement of cash flows
Statement of retained earnings
#2
What is the primary goal of financial management?
Maximizing profits
Maximizing shareholder wealth
Minimizing expenses
Increasing market share
#3
Which type of organizational structure divides employees into specialized groups based on function or role?
Matrix structure
Divisional structure
Functional structure
Flat structure
#4
What is the term for the process of identifying, measuring, and communicating financial information about an organization?
Financial analysis
Financial planning
Financial reporting
Financial modeling
#5
Which financial statement shows a company's revenues and expenses over a specific period?
Balance sheet
Income statement
Statement of cash flows
Statement of retained earnings
#6
Which organizational structure is characterized by a clear chain of command, with each person having a specific role and responsibility?
Functional structure
Matrix structure
Divisional structure
Hierarchical structure
#7
What financial ratio measures a company's ability to pay off its short-term liabilities with its short-term assets?
Debt-to-equity ratio
Current ratio
Return on investment
Asset turnover ratio
#8
Which financial ratio measures a company's profitability by dividing net income by revenue?
Return on assets (ROA)
Gross profit margin
Net profit margin
Return on equity (ROE)
#9
What does the Weighted Average Cost of Capital (WACC) represent?
The total market value of a company's outstanding shares
The average cost of debt and equity financing for a company
The total value of a company's assets
The total cash inflow and outflow of a company
#10
What is the formula to calculate the earnings per share (EPS) of a company?
Net Income / Total Assets
Net Income / Total Equity
Net Income / Total Revenue
Net Income / Total Shares Outstanding
#11
In financial management, what does the term 'capital budgeting' refer to?
Managing a company's day-to-day expenses
Evaluating long-term investment opportunities
Determining the optimal capital structure
Assessing a company's financial performance
#12
What is the primary objective of financial leverage?
To increase profitability
To decrease financial risk
To increase the return on equity
To decrease the cost of debt