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1. Which of the following is a measure of a company profitability? A) Return on investment B) Working capital C) Cash flow D) Current ratio

1. Which of the following is a measure of a company profitability? A) Return on investment B) Working capital C) Cash flow D) Current ratio

2. What is the difference between a stock and a bond? A) Stocks represent ownership in a company, while bonds represent debt owed by a company. B) Stocks represent debt owed by a company, while bonds represent ownership in a company. C) Both stocks and bonds represent ownership in a company. D) Both stocks and bonds represent debt owed by a company.

3. Which financial statement provides a snapshot of a company's financial position at a specific point in time? A) Income statement B) Balance sheet C) Cash flow statement D) Statement of retained earnings

4. What is the difference between a budget deficit and a budget surplus? A) A budget deficit occurs when expenses exceed revenue, while a budget surplus occurs when revenue exceeds expenses. B) A budget deficit occurs when revenue exceeds expenses, while a budget surplus occurs when expenses exceed revenue. C) A budget deficit occurs when a company does not have enough cash on hand to cover its expenses, while a budget surplus occurs when a company has excess cash. D) A budget deficit occurs when a company's assets exceed its liabilities, while a budget surplus occurs

5. when a company's liabilities exceed its assets.

Which of the following is an example of an asset? A) Accounts payable B) Inventory C) Rent expense D) Salaries payable

6. Which of the following is an example of a liability? A) Accounts receivable B) Prepaid rent C) Notes payable D) Retained earnings

7. What is the difference between simple interest and compound interest? A) Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal amount plus any accumulated interest. B) Simple interest is calculated only on the accumulated interest, while compound interest is calculated on the principal amount plus any accumulated interest. C) Simple interest is calculated only once, while compound interest is calculated multiple times over a period of time. D) Simple interest is calculated based on a fixed interest rate, while compound interest is calculated based on a variable interest rate.

8. What is the purpose of financial ratios? A) To provide a comparison of a company's financial performance over time B) To provide a comparison of a company's financial performance to its competitors C) To assess a company's ability to meet its short-term and long-term obligations D) All of the above

9. What is the difference between a dividend and a stock buyback? A) A dividend is a payment to shareholders, while a stock buyback is a purchase of shares by the company. B) A dividend is a purchase of shares by the company, while a stock buyback is a payment to shareholders. C) Both a dividend and a stock buyback are payments to shareholders. D) Both a dividend and a stock buyback are purchases of shares by the company.

10. What is the purpose of a credit score? A) To assess a person's ability to repay a loan B) To assess a person's income level C) To assess a person's employment history D) To assess a person's credit limit

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