#1
Which financial statement provides an overview of a company's revenues and expenses during a specific period?
Income statement
ExplanationSummary of revenues and expenses.
#2
Which financial statement reports a company's assets, liabilities, and shareholders' equity at a specific point in time?
Balance sheet
ExplanationSnapshot of financial position.
#3
Which financial ratio measures a company's ability to pay off its short-term liabilities with its current assets?
Quick ratio
ExplanationIndicator of short-term liquidity.
#4
What does the term 'ROI' stand for in financial analysis?
Return on Investment
ExplanationProfitability of an investment.
#5
What does the term 'EPS' stand for in financial analysis?
Earnings Per Share
ExplanationPortion of company's profit allocated to each outstanding share.
#6
Which of the following is NOT a category of financial ratios?
Market valuation ratios
ExplanationMeasure of stock's value, not ratio.
#7
What does the term 'EBITDA' stand for in financial analysis?
Earnings Before Interest, Taxes, Depreciation, and Amortization
ExplanationEarnings excluding certain expenses.
#8
Which of the following is NOT a liquidity ratio?
Debt-to-Equity ratio
ExplanationMeasure of financial structure, not liquidity.
#9
What does the debt-to-equity ratio measure?
The proportion of debt a company uses to finance its operations compared to its equity
ExplanationBalance between debt and equity financing.
#10
Which of the following financial ratios measures a company's profitability by expressing net income as a percentage of revenue?
Gross profit margin ratio
ExplanationProfitability on each dollar of revenue.
#11
What does the 'DuPont Analysis' aim to evaluate?
A company's profitability and efficiency
ExplanationBreakdown of return on equity.
#12
Which financial statement shows changes in a company's retained earnings over a period of time?
Statement of changes in equity
ExplanationDetails of changes in shareholders' equity.