FlexiQuiz - QAI - Module #7 Quiz

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

Assessing the company's market share

Determining the company's environmental impact

Assessing the company's customer satisfaction

Assessing the company's performance

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

Real Estate

Inventory

Long-term loans

Equipment

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

Balance Sheet

Statement of Shareholder's Equity

Cash Flow Statement

Income Statement

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

Statement of Shareholders' Equity

Cash Flow Statement

Income Statement

Balance Sheet

5. What does EBIT stand for?

Earnings Before Interest and Taxes

Earnings Before Inflation and Taxes

Earnings Before Income and Taxes

None of the answers are correct

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

Net Income + Expenses

Earnings Before Taxes - Taxes

Revenue - Expenses

Gross Margin - SG&A

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

The profitability of a specific customer

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

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

Balance Sheet

Marketing Statement

Income Statement

Cash Flow Statement

9. What is the formula for calculating Gross Margin?

Earnings Before Taxes

Gross Profit - Cost of Goods Sold

Revenue - Cost of Goods Sold

Net Income + Expenses

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

Cash from Marketing Activities

Cash from Operating Activities

Cash from Accounts Receivable

Cash from Customer Relationships

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

Statement of Shareholder's Equity

Cash Flow Statement

Income Statement

Balance Sheet

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

Sales and Gross Analysis

Sales, General, and Administrative

Selling, General, and Assets

Shareholder's Gross Assessment

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

The company's total assets

The company's total liabilities

A company's total revenue

The accounting identity of a Balance Sheet

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

Statement of Shareholder's Equity

Cash Flow Statement

Balance Sheet

Income Statement

15. What is Customer Acquisition Cost (CAC)?

The average number of purchases per year by a customer

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

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

Earnings Per Share

Gross Margins

Net Income

EBITDA

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

Cash Accounting

Non-Cash Accounting

Accrual Accounting

Net Income Accounting

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

True

False

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

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

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

20. 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

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

A company's total equity

A company's long-term liabilities

A company's total assets

A company's ability to meet short-term obligations

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