Financial Statement Analysis and Liquidity Management Quiz
Test your knowledge on financial ratios including liquidity, efficiency, profitability, and solvency with this interactive quiz on ratio analysis.
#1
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income statement
Statement of cash flows
Balance sheet
Statement of changes in equity
#2
What does the current ratio measure?
A company's ability to pay off its long-term debt
A company's ability to generate profit
A company's liquidity
A company's efficiency in using its assets
#3
Which of the following is not considered a liquidity ratio?
Current ratio
Quick ratio
Debt ratio
Cash ratio
#4
What does the cash ratio measure?
A company's ability to pay off its current liabilities with its most liquid assets
A company's ability to generate cash flow from its operations
A company's ability to pay off its long-term debt
A company's profitability
#5
Which of the following is an indicator of a company's liquidity?
Quick ratio
Debt-to-equity ratio
Return on investment
Earnings per share
#6
What does the acid-test (quick) ratio measure?
A company's ability to pay off its current liabilities with its most liquid assets
A company's ability to pay off its long-term debt
A company's overall financial health
A company's profitability
#7
Which of the following is an efficiency ratio?
Current ratio
Quick ratio
Inventory turnover ratio
Debt ratio
#8
What does the inventory turnover ratio measure?
A company's ability to pay off its current liabilities with its most liquid assets
The number of times a company's inventory is sold and replaced over a period
A company's overall financial health
A company's profitability
#9
Which financial ratio indicates the number of times a company can pay its current liabilities with its current assets?
Debt ratio
Current ratio
Quick ratio
Accounts receivable turnover ratio
#10
Which financial ratio indicates the percentage of a company's assets financed by debt?
Debt ratio
Current ratio
Quick ratio
Accounts receivable turnover ratio
#11
What does the return on equity (ROE) ratio measure?
A company's ability to pay off its current liabilities with its most liquid assets
A company's profitability relative to its equity
A company's overall financial health
A company's efficiency in using its assets
#12
Which of the following is a liquidity ratio?
Debt-to-equity ratio
Inventory turnover ratio
Cash ratio
Return on equity
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