#1
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income statement
Cash flow statement
Balance sheet
Statement of changes in equity
#2
Which financial ratio measures a company's ability to meet its short-term obligations with its most liquid assets?
Debt-to-Equity Ratio
Current Ratio
Return on Investment (ROI)
Earnings Per Share (EPS)
#3
Which financial statement reports a company's revenues and expenses over a period, resulting in its net income or loss?
Balance sheet
Cash flow statement
Income statement
Statement of changes in equity
#4
What does the debt-to-equity ratio measure?
A company's profitability
A company's liquidity
A company's financial leverage
A company's market performance
#5
Which of the following is NOT considered a category of financial ratios?
Liquidity ratios
Profitability ratios
Debt ratios
Market ratios
#6
Which of the following is a liquidity ratio?
Debt-to-Equity Ratio
Quick Ratio
Return on Assets (ROA)
Price-to-Earnings (P/E) Ratio
#7
What does the DuPont analysis primarily focus on?
Assessing a company's solvency
Evaluating a company's profitability
Analyzing a company's efficiency
Understanding a company's capital structure
#8
Which of the following financial ratios evaluates a company's efficiency in using its assets to generate revenue?
Gross Profit Margin
Operating Margin
Asset Turnover Ratio
Return on Equity (ROE)
#9
What is the primary purpose of trend analysis in financial statement analysis?
To assess a company's liquidity
To evaluate changes in a company's financial position over time
To determine a company's profitability
To measure a company's risk of bankruptcy
#10
What does the Debt-to-Asset ratio measure?
A company's ability to generate profits
A company's ability to meet short-term obligations
The proportion of a company's assets financed by debt
The proportion of a company's assets financed by equity
#11
What does the Altman Z-score measure?
A company's liquidity
A company's profitability
A company's risk of bankruptcy
A company's market performance
#12
What does the Earnings Per Share (EPS) ratio indicate?
The efficiency of a company's operations
The return earned on each share of common stock
The percentage of earnings distributed as dividends
The market value of a company's shares
#13
What does the Price-to-Earnings (P/E) ratio indicate about a company?
The percentage of earnings distributed as dividends
The market value of a company's shares relative to its earnings
The efficiency of a company's operations
The return earned on each share of common stock
#14
What does the term 'Free Cash Flow' represent?
Cash flow generated by the company's core business operations
Cash flow available after capital expenditures
Cash flow available for dividends and share buybacks
Cash flow available for debt repayment
#15
Which financial ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT)?
Current Ratio
Times Interest Earned Ratio
Quick Ratio
Debt-to-Equity Ratio