#1
Which financial statement provides information about a company's assets, liabilities, and shareholders' equity at a specific point in time?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#2
Which financial statement reports a company's revenues and expenses over a period, showing whether the company made a profit or incurred a loss?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#3
Which financial statement shows changes in a company's retained earnings over a period?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#4
Which financial statement provides information about a company's cash inflows and outflows during a specified period?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#5
Which financial statement provides a summary of a company's operating, financing, and investing activities during a period?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#6
Which financial statement provides information about changes in a company's cash and cash equivalents during a specified period?
Income statement
Statement of cash flows
Balance sheet
Statement of retained earnings
#7
What does the debt-to-equity ratio measure?
A company's ability to pay its short-term obligations with its short-term assets
The proportion of debt and equity used to finance a company's assets
The percentage of earnings distributed as dividends to shareholders
The rate at which a company's stock is traded in the market
#8
Which of the following is not considered a liquidity ratio?
Current ratio
Quick ratio
Debt-to-equity ratio
Cash ratio
#9
What does the Gross Profit Margin measure?
The percentage of each sales dollar remaining after covering all expenses
The percentage of net income compared to total revenue
The percentage of each sales dollar remaining after deducting the cost of goods sold
The rate of return on invested capital
#10
Which financial ratio indicates a company's ability to generate profit from its operations before taxes and interest expenses?
Return on Assets (ROA)
Return on Equity (ROE)
Operating Profit Margin
Net Profit Margin
#11
What does the Current Ratio measure?
A company's ability to pay off its long-term debt
The efficiency of a company's inventory management
A company's ability to pay its short-term obligations with its short-term assets
The level of debt in a company's capital structure
#12
Which financial ratio measures a company's efficiency in using its assets to generate revenue?
Return on Assets (ROA)
Return on Equity (ROE)
Asset Turnover Ratio
Debt-to-Equity Ratio
#13
What is the formula for calculating Return on Equity (ROE)?
(Net Income / Average Total Assets) * 100
(Net Income / Shareholder's Equity) * 100
(Operating Income / Total Revenue) * 100
(Net Income / Earnings Before Interest and Taxes) * 100
#14
What is the formula for calculating the Debt-to-Equity Ratio?
Total Debt / Total Equity
Total Debt / Total Assets
Net Income / Shareholder's Equity
Total Liabilities / Total Equity
#15
What is the purpose of the DuPont analysis?
To analyze a company's liquidity position
To evaluate a company's capital structure
To assess a company's profitability drivers
To measure a company's market share