#1
Which of the following financial ratios measures a company's ability to meet its short-term obligations?
Return on Investment (ROI)
Debt to Equity Ratio
Current Ratio
Asset Turnover Ratio
#2
What does the Debt to Equity Ratio indicate about a company?
Its profitability
Its liquidity
Its capital structure
Its market share
#3
Which of the following is an example of a liquidity ratio?
Return on Assets (ROA)
Debt to Equity Ratio
Quick Ratio
Price-Earnings (P/E) Ratio
#4
What does the Gross Profit Margin ratio indicate?
The efficiency of the company's operations
The proportion of revenue remaining after deducting the cost of goods sold
The company's ability to meet short-term obligations
The company's ability to generate profit from shareholders' investments
#5
Which financial ratio is also known as the Acid-Test Ratio?
Current Ratio
Debt to Equity Ratio
Quick Ratio
Gross Profit Margin
#6
Which financial statement provides information about a company's cash receipts and cash payments?
Income Statement
Balance Sheet
Cash Flow Statement
Statement of Retained Earnings
#7
Which financial statement provides an overview of a company's revenues and expenses over a specific period?
Balance Sheet
Income Statement
Cash Flow Statement
Statement of Retained Earnings
#8
What does the Return on Assets (ROA) ratio measure?
The efficiency of using assets to generate profit
The company's ability to pay off its debts
The company's ability to generate revenue from shareholders' investments
The ratio of net income to total equity
#9
What does the Earnings Per Share (EPS) measure?
The total revenue of the company
The proportion of net income attributable to each outstanding share of common stock
The company's ability to pay off its debts
The total assets of the company
#10
What is the formula for calculating the Current Ratio?
(Current Assets - Current Liabilities) / Total Assets
Current Assets / Current Liabilities
Net Income / Total Assets
(Total Liabilities - Total Equity) / Total Assets
#11
What does the Quick Ratio measure?
The company's ability to pay off its long-term debts
The company's ability to cover its short-term liabilities with its most liquid assets
The company's overall profitability
The company's efficiency in managing its inventory
#12
What does the Operating Cash Flow Ratio indicate?
The company's ability to generate cash from its daily business operations
The company's ability to meet its short-term obligations
The company's ability to generate profit from its investments
The company's liquidity position relative to its long-term debts
#13
In financial analysis, what does a high Price-Earnings (P/E) ratio typically indicate?
The company's stock is undervalued
Investors have confidence in the company's future growth
The company is experiencing financial distress
The company has high levels of debt
#14
What does the DuPont Analysis method focus on?
Assessing a company's market share
Analyzing a company's cost structure
Evaluating a company's return on equity (ROE)
Calculating a company's dividend yield
#15
Which of the following is NOT a component of the DuPont Analysis?
Net Profit Margin
Total Asset Turnover
Debt to Equity Ratio
Return on Equity
#16
What does the Interest Coverage Ratio measure?
The company's ability to cover its interest expenses with its operating income
The company's ability to generate profit from its investments
The company's liquidity position relative to its long-term debts
The company's ability to meet its short-term obligations
#17
What does the Price/Earnings to Growth (PEG) ratio help investors assess?
The company's liquidity position
The company's potential future growth relative to its current price
The company's ability to pay dividends
The company's profitability
#18
What does the Cash Conversion Cycle (CCC) measure?
The company's ability to meet its short-term obligations
The efficiency of a company's cash management
The company's liquidity position relative to its long-term debts
The company's profitability