What is the formula for calculating the present value of a future stream of cash flows? A) PV = C/(1+r)^t B) PV = C(1+r)^t C) PV = C/r D) PV = C/t

Which financial statement shows a company's revenues and expenses over a specific period of time? A) Balance sheet B) Income statement C) Statement of cash flows D) Statement of changes in equity

What is the purpose of financial leverage? A) To reduce a company's risk B) To increase a company's liquidity C) To increase a company's profitability D) To increase a company's debt

Which of the following is an example of an intangible asset? A) Cash B) Inventory C) Equipment D) Patents

What is the formula for calculating the debt-to-equity ratio? A) Debt/Equity B) Equity/Debt C) (Total liabilities - Equity)/Equity D) (Total liabilities + Equity)/Equity

What is the difference between simple and compound interest? A) Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and any accumulated interest. B) Simple interest is calculated on both the principal and any accumulated interest, while compound interest is calculated only on the principal amount. C) Simple interest is calculated using a fixed interest rate, while compound interest is calculated using a variable interest rate. D) Simple interest is only applicable to short-term loans, while compound interest is applicable to long-term loans.