15 Multiple Choice Questions about Financial Analysis (Balance Sheet – Income Statement – Cash Flow Statement) 1. What is the main purpose of balance sheet analysis? A. Calculation of VATB. Evaluation of the company’s financial positionC. Control of salesD. Preparation of the budget 2. What does total assets represent on the balance sheet? A. The company’s profitsB. The company’s liabilitiesC. The resources owned by the companyD. Cash flows 3. Which of the following belongs to current assets? A. BuildingsB. MachineryC. InventoryD. Long-term loans 4. What does the current ratio measure? A. Profitability of the companyB. Ability to cover short-term liabilitiesC. Speed of receivables collectionD. Relationship between equity and liabilities 5. What does the liabilities side of the balance sheet include? A. Revenues and expensesB. AssetsC. Liabilities and equityD. Cash flows 6. Which ratio is used to evaluate capital structure? A. Liquidity ratioB. Profitability ratioC. Leverage ratioD. Inventory turnover ratio 7.…
