Financial Literacy IQ Test November 7, 2016 admin_61054 Posted by admin_61054 on November 7, 2016November 3, 2022 Welcome to your Financial Literacy IQ Test Business Email What are the major Financial Statements? Annual Report, 10K, Bank Accounts Debits, Credits, Earnings Statement Balance Sheet, Income Statement, Cash Flow Statement Retained Earnings, Current Assets, Current Liabilities Which Financial Statement represents a snapshot in time? Income Statement Balance Sheet Cash Flow Statement Retained Earnings Which Financial Statement calculates Earnings and Profit? Income Statement Balance Sheet Cash Flow Statement Retained Earnings Which Financial Statement reconciles Profit and Cash? Income Statement Balance Sheet Cash Flow Statement Retained Earnings Which Financial Statement details changes to parts of the Balance Sheet? Statement of Shareholder's Equity Cash Flow Statement Income Statement All of the Above All of these are cash Operating Expenses except: Administrative salaries Advertising Costs Equipment depreciation Research & Development costs Which of the following is not part of Working Capital? Inventory Cash Accounts Receivable Accounts Payable Furniture, Fixtures and Equipment All of the above are part of working capital You should be pleased about your company’s financial results if: There is a negative trend in net income There is an increasing trend in COGS Cash flow is coming from company operations Cash flow is coming from company investing None of the above To investors and analysts, free cash flow is a key metric because: It is the cash that can be used to pay shareholders their dividends or invest in new projects It is the cash that investors originally put into the business It is the cash from investing that flowed into the business in the previous year It is the cash that is “free” – meaning, the company doesn’t have to pay interest on it All of the above Earnings, Profit, and Net Income are synonyms. True False What are the major categories of the Balance Sheet? Debits and Credits Depreciation, Amortization, and Interest Assets, Liabilities and Equity Accounts Payable and Accounts Receivable None of the above Which is considered an Asset? Patent Factory Accounts Recievable Inventory All ob the above What Accounts are created by Accrual Accounting? Debits and Credits Accounts Receivable and Accounts Payable Inventory and Equity All of the Above What is the metric that relates the price of a stock to net income? Profitability Index Payback Period Price Earnings Ratio Net Present Value Current Ratio What is the key to value investing? Market timing Trend Analysis Financial Statement Analysis Luck Depreciation is: A onetime charge A non-cash expense A liability An intangible asset Dilution of equity What is the Accounting Equation? A = L + E P/E = C Credits = Debits Assets = Liabilities E = mc You are happy if your company's current ratio is: Greater than 1 Less than 1 Negative Positive Equal to 1 What is included in Current Assets? Cash Marketable Securities Accounts Receivable Inventory All of the above Which financial statement is created by the accrual method of accounting? Balance Sheet Statement of Shareholder’s Equity Income Statement Cash Flow Statement None of the above Time's up
