Financial Statements and Cash Flow Analysis Quiz

Test your knowledge of financial analysis with questions on income statements, cash flow, ratios, and more. Challenge yourself now!

#1

Which financial statement reports a company's revenues and expenses over a period of time?

Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#2

How does a decrease in accounts receivable affect cash flow?

Increases cash flow
Decreases cash flow
Has no effect on cash flow
Depends on other factors
#3

Which financial statement provides a snapshot of a company's financial position at a specific point in time?

Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
#4

What does a positive cash flow from financing activities indicate?

The company has generated cash from its core operations
The company has invested in new projects
The company has raised capital through borrowing or equity issuance
The company has paid dividends to its shareholders
#5

What is the purpose of the cash flow statement?

To show a company's profitability over a period of time
To provide a snapshot of a company's financial position at a specific point in time
To report a company's sources and uses of cash during a period
To reconcile the beginning and ending balances of a company's retained earnings
#6

How does a decrease in inventory affect the cash flow statement?

Decreases cash flow
Increases cash flow
Has no effect on cash flow
Depends on other factors
#7

What does the 'net income' on an income statement represent?

Total assets minus total liabilities
Total revenue minus total expenses
Total cash inflow minus total cash outflow
Total shareholder equity
#8

Which of the following is NOT a component of the operating activities section in a cash flow statement?

Receipts from customers
Payments to suppliers
Interest received
Payments for dividends
#9

What is the formula to calculate free cash flow?

Net Income - Dividends
Operating Cash Flow - Capital Expenditures
Total Revenue - Total Expenses
Current Assets - Current Liabilities
#10

Which of the following is NOT considered a non-cash expense?

Depreciation
Interest Expense
Amortization
Stock-Based Compensation
#11

What does EBITDA stand for in finance?

Earnings Before Interest, Taxes, Depreciation, and Amortization
Earnings Before Income and Taxes, Depreciation, and Amortization
Earnings Before Interest, Taxes, Depreciation, and Assets
Earnings Before Interest, Taxes, Depreciation, and Accounting
#12

Which financial statement shows changes in equity over a period of time?

Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Stockholder's Equity
#13

What does a high debt-to-equity ratio indicate about a company's financial health?

The company is highly leveraged
The company has strong profitability
The company has ample liquidity
The company is at low risk of default
#14

Which financial statement is used to reconcile the beginning and ending balances of a company's retained earnings?

Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
#15

What does the 'quick ratio' measure?

A company's ability to pay its short-term liabilities with its most liquid assets
A company's leverage ratio
A company's profitability
A company's efficiency in managing its inventory
#16

Which of the following ratios measures a company's ability to meet its short-term obligations with its most liquid assets?

Debt-to-Equity Ratio
Current Ratio
Return on Equity
Earnings Per Share
#17

Which of the following is NOT a section of the statement of cash flows?

Operating Activities
Investing Activities
Financing Activities
Revenue Recognition
#18

What does the operating cash flow measure?

A company's ability to generate profit
A company's ability to meet its short-term obligations
A company's cash flow from its core business operations
A company's ability to pay its long-term debts

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