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Financial Reporting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. As a general rule, companies are able to meet their short-term liabilities if they have a quick ratio of _____.

Question 2 2. Using the image of the balance sheet, what is this company's current ratio?

Question 3 3. There are five basic _____ which are calculated using information found in the balance sheet and income statement that are measures of the productivity and efficiency of a business.

Question 4 4. Calculate this company's quick ratio using the balance sheet image.

Question 5 5. Using the image of the balance sheet, what is this company's debt-to-assets ratio?

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Question 6 6. On which financial statement is cash flow reported?

Question 7 7. You work as an accountant for a small business. The owner of the company has asked you to give her the operating cash flow for the company for the fiscal quarter that just ended. Upon review of of the relevant documents, you determine that the company's earnings before taxes and interest for the quarter was $230,000, it depreciated $5,000 worth of equipment and has paid estimated taxes of $20,000. There was no amortization. What is the operating cash flow for the last quarter?

Question 8 8. As the CFO of Acme Machinery, Kay is concerned that their cash flow is being impacted by the amount of money they are spending on expensive pieces of equipment. Should Kay look at their free cash flow or net cash flow, and why?

Question 9 9. What's the difference between negative cash flow and positive cash flow?

Question 10 10. What is the best explanation of cash flow?

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Question 11 11. What financial report tells you what the company owns and what it owes?

Question 12 12. Which of the following gives more detail on a section of the balance sheet?

Question 13 13. What financial report can help you figure out how well a company is managing its money?

Question 14 14. What financial report tells you if the company suffered a loss or earned a profit?

Question 15 15. Which one of the following is the best explanation of financial reporting?

Financial Reporting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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