Financial Ratios and Accounting Fundamentals Quiz

Explore financial ratios & accounting fundamentals in this quiz. Can you answer questions on current ratio, EBITDA, debt-to-equity ratio & more?

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What does the current ratio measure?

A company's ability to pay short-term liabilities with short-term assets

A company's profitability

A company's long-term solvency

A company's efficiency in managing inventory

Which financial ratio indicates the efficiency of a company in generating profits from its assets?

Return on Equity (ROE)

Debt to Equity (D/E) ratio

Gross Profit Margin

Return on Assets (ROA)

What does the term 'inventory turnover ratio' indicate?

The efficiency of a company in managing its inventory

The profitability of a company

The liquidity of a company

The solvency of a company

Which financial ratio assesses the ability of a company to cover its interest expenses with its operating income?

Times Interest Earned Ratio

Debt Ratio

Debt Service Coverage Ratio

Profit Margin Ratio

Which financial ratio measures a company's ability to turn its receivables into cash quickly?

Accounts Receivable Turnover Ratio

Inventory Turnover Ratio

Days Sales Outstanding (DSO)

Asset Turnover Ratio

What does the term 'EBITDA' stand for in financial analysis?

Earnings Before Interest, Taxes, Depreciation, and Amortization

Earnings Before Income and Taxes, Deductions, and Amortization

Earnings Before Interest, Taxation, Depreciation, and Allowances

Earnings Before Interest, Taxes, Depreciation, and Allocation

What is the formula for calculating the debt-to-equity ratio?

Total liabilities / Total equity

Total assets / Total equity

Total liabilities / Total assets

Total equity / Total assets

What is the formula for calculating the gross profit margin?

(Revenue - Cost of Goods Sold) / Revenue

(Revenue - Operating Expenses) / Revenue

(Revenue - Cost of Goods Sold) / Total Assets

(Revenue - Operating Expenses) / Total Assets

Which financial ratio measures the proportion of debt used to finance a company's assets?

Debt to Equity Ratio

Current Ratio

Return on Equity

Quick Ratio

#10

Which financial ratio indicates the portion of profit retained for future use?

Earnings Per Share (EPS)

Dividend Yield Ratio

Retention Ratio

Price to Earnings (P/E) Ratio

#11

Which financial ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets?

Return on Investment (ROI)

Quick Ratio

Operating Cash Flow Ratio

Inventory Turnover Ratio

#12

What does the term 'working capital' represent in financial analysis?

The total assets of a company

The long-term liabilities of a company

The difference between current assets and current liabilities

The retained earnings of a company

#13

Which financial ratio measures the efficiency of a company in using its assets to generate revenue?

Inventory Turnover Ratio

Return on Assets (ROA)

Debt to Equity Ratio

Gross Profit Margin

#14

What does the term 'return on invested capital (ROIC)' measure?

The return generated by the company's shareholders

The return generated by the company's debt holders

The return generated by the company's total capital

The return generated by the company's equity capital

#15

What does the term 'financial leverage' refer to?

The use of debt to finance a company's operations and investments

The use of equity to finance a company's operations and investments

The use of short-term financing to meet long-term obligations

The use of retained earnings to finance a company's growth

Financial Ratios and Accounting Fundamentals Quiz

What does the current ratio measure?

Which financial ratio indicates the efficiency of a company in generating profits from its assets?

What does the term 'inventory turnover ratio' indicate?

Which financial ratio assesses the ability of a company to cover its interest expenses with its operating income?

Which financial ratio measures a company's ability to turn its receivables into cash quickly?

What does the term 'EBITDA' stand for in financial analysis?

What is the formula for calculating the debt-to-equity ratio?

What is the formula for calculating the gross profit margin?

Which financial ratio measures the proportion of debt used to finance a company's assets?

Which financial ratio indicates the portion of profit retained for future use?

Which financial ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets?

What does the term 'working capital' represent in financial analysis?

Which financial ratio measures the efficiency of a company in using its assets to generate revenue?

What does the term 'return on invested capital (ROIC)' measure?

What does the term 'financial leverage' refer to?

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