1. Which of the following is a type of financial statement that reports a company's revenues and expenses for a specific period of time? A) Balance Sheet B) Income Statement C) Statement of Cash Flows D) Statement of Changes in Equity

2. Which of the following financial ratios measures a company's ability to pay off its current liabilities with its current assets? A) Debt-to-Equity Ratio B) Current Ratio C) Gross Margin Ratio D) Return on Equity

3. If a company has a gross profit of $200,000, operating expenses of $50,000, and interest expenses of $20,000, what is the company's net income? A) $130,000 B) $150,000 C) $170,000 D) $180,000

4. Which of the following is an accounting method that recognizes revenue and expenses when they are incurred, regardless of when payment is received or made? A) Cash Basis Accounting B) Accrual Basis Accounting C) Modified Cash Basis Accounting D) Hybrid Basis Accounting

5. The balance sheet of a company shows total assets of $500,000, total liabilities of $200,000, and total equity of $300,000. What is the company's debt-to-equity ratio?

6. A company has sales revenue of $1,000,000, cost of goods sold of $400,000, and operating expenses of $300,000. What is the company's gross margin ratio and net profit margin ratio?

7. A company issues $500,000 in bonds with a coupon rate of 6%, payable semi-annually, and a maturity of 5 years. What is the total interest expense over the life of the bonds?

8. A company has accounts receivable of $100,000 and an allowance for doubtful accounts of $5,000. If the company estimates that 5% of accounts receivable will not be collected, what is the net realizable value of accounts receivable?

9. A company acquires a building for $500,000 and estimates its useful life to be 20 years with no residual value. If the company uses the straight-line method to depreciate the building, what is the annual depreciation expense?

10. A company has net income of $500,000 and 250,000 outstanding shares of common stock. If the company declares a dividend of $2 per share, what is the dividend payout ratio?

11. A company has inventory of $100,000 at the beginning of the year and $120,000 at the end of the year. If the cost of goods sold for the year is $500,000, what is the company's inventory turnover ratio?

12. A company has total assets of $1,000,000, total liabilities of $500,000, and total equity of $500,000. If the company's return on equity is 10%, what is the company's net income?