index

The Financial IQ Quiz

1 2 3 4 5 6 7
  • Question: 1
    Which statement summarizes changes to parts of the balance sheet?
    Income Statement
    Cash Flow Statement
    Statement of Shareholders' Equity
    All of the above
  • Question: 2
    EBITDA is an important measure in companies because:
    It is free cash flow.
    It subtracts taxes and depreciation from earnings to get a truer picture of the business.
    It is an indication of future operating cash flow.
    It is the key measure of earnings before interest, transfers and debt accumulation.
  • Question: 3
    All of these are included in operating expenses except:
    Advertising costs
    Administrative salaries
    Expensed research and development costs
    Delivery of raw materials
  • Question: 4
    Employees can help to build shareholder equity in a company by focusing on:
    Increasing assets with debt
    Decreasing debt with company cash
    Increasing profit
    All of the above
  • Question: 5
    A company has more cash today when:
    Customers pay their bills sooner.
    Accounts receivable increases.
    Profit increases.
    Retained earnings increases.
  • Question: 6
    Which of the following is not part of working capital?
    Accounts receivable
    Inventory
    Property, plant and equipment
    All of the above are part of working capital
  • Question: 7
    You are in a meeting where financial information is being shared. You are fairly certain that most of those in the meeting don't understand the information. What happens? (Not Scored)
    Someone in the meeting will ask for clarification.
    Most people don't ask because they don't want to appear uninformed in front of their boss or peers.
    Most people have gotten pretty good at pretending they understand.
    Most people feel that financial information about the company doesn't apply to them and they don't pay much attention.
Net Income / Net Profit
Test
Harvardblog
Concept
index