FlexiQuiz - QAI - Module #7 Quiz

1. What is the primary purpose of financial analysis for investors?

Determining the company's environmental impact

Assessing the company's customer satisfaction

Assessing the company's performance

Assessing the company's market share

2. What does "unit economics" refer to in a business context?

The analysis of a product or service's cost and revenue

The analysis of a company's marketing and sales expenses

The overall financial performance of a company

The profitability of a specific customer

3. What is Customer Acquisition Cost (CAC)?

The price a customer is willing to pay for a product or service

Marketing and sales expenses related to acquiring new customers

The total profit generated by a customer over their lifetime

The average number of purchases per year by a customer

4. What does Net Working Capital (NWC) measure on a Balance Sheet?

A company's long-term liabilities

A company's total assets

A company's ability to meet short-term obligations

A company's total equity

5. What is the formula for calculating Gross Margin?

Gross Profit - Cost of Goods Sold

Revenue - Cost of Goods Sold

Net Income + Expenses

Earnings Before Taxes

6. What does the equation "Assets = Liabilities + Equity" represent on a Balance Sheet?

The company's total liabilities

A company's total revenue

The accounting identity of a Balance Sheet

The company's total assets

7. What is the primary purpose of a cash flow statement?

To report a company's total revenue over a specific period

To calculate a company's net income over a specific period

To track cash usage and cash generation during a specific period

To assess a company's total assets over a specific period

8. Which of the following is NOT one of the key financial statements used in financial analysis?

Marketing Statement

Income Statement

Cash Flow Statement

Balance Sheet

9. Customer Lifetime Value (CLV) is calculated by dividing the total revenue by the number of customers

False

True

10. What financial statement provides information on a company's financial position, performance, and cash flow for a specific period in the past?

Cash Flow Statement

Balance Sheet

Income Statement

Statement of Shareholder's Equity

11. What accounting method records transactions when they occur, regardless of when cash is received or paid out?

Non-Cash Accounting

Accrual Accounting

Net Income Accounting

Cash Accounting

12. What does SG&A stand for in financial analysis?

Sales, General, and Administrative

Selling, General, and Assets

Shareholder's Gross Assessment

Sales and Gross Analysis

13. Private Investor B (PIB) is considering an investment in CompanyY, which operates a subscription-based newsletter service. PIB has gathered the following financial information from CompanyY:

Monthly subscription fee charged to customers: $19.99
Average subscription duration: 12 months
Monthly costs associated with providing the newsletter service: $2.50 per subscriber
Customer Acquisition Costs (CAC): $50 per new subscriber

What is the approximate Customer Lifetime Value (CLV)

$240

$300

$210

$170

14. Which of the following is considered a current asset on a Balance Sheet?

Inventory

Long-term loans

Equipment

Real Estate

15. What financial metric is considered a rough approximation of operating cash flow?

Gross Margins

Net Income

EBITDA

Earnings Per Share

16. Which financial statement is used for forward-looking estimates of a company's financial performance?

Cash Flow Statement

Income Statement

Balance Sheet

Statement of Shareholders' Equity

17. What is the formula for calculating Net Income on an income statement?

Earnings Before Taxes - Taxes

Revenue - Expenses

Gross Margin - SG&A

Net Income + Expenses

18. What does EBIT stand for?

Earnings Before Inflation and Taxes

Earnings Before Income and Taxes

None of the answers are correct

Earnings Before Interest and Taxes

19. Which of the following is one of the three main categories of a cash flow statement?

Cash from Operating Activities

Cash from Accounts Receivable

Cash from Customer Relationships

Cash from Marketing Activities

20. What financial statement provides information on a company's profitability over a specific period of time?

Statement of Shareholder's Equity

Cash Flow Statement

Income Statement

Balance Sheet

21. What type of financial statement provides information on a company's operating, investing, and financing activities for a specific period?

Cash Flow Statement

Income Statement

Balance Sheet

Statement of Shareholder's Equity

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