Financial Analysis- Quiz 1

Which of the following represents a company's earnings before interest, taxes, depreciation, and amortization?

• EBITDA

• EBT

• EBIT

Which of the following is an example of "depreciation"?

• a) The decrease in value of a patent over time

• b) The decrease in value of a building over time

• c) The decrease in value of a trademark over time

• d) The decrease in value of accounts receivable over time

Which of the following is an example of "amortization"?

• a) The decrease in value of a machine over time

• b) The decrease in value of a patent over time

• c) The decrease in value of a building over time

• d) The decrease in value of inventory over time

Which of the following is an example of "non-operating revenue" for a manufacturing company?

• a) Revenue generated from the sale of products

• b) Revenue generated from interest earned on investments

• c) Revenue generated from the production of goods

• d) Revenue generated from the delivery of services

A company’s current financial position would best be evaluated using the

• A. balance sheet.

• B. income statement.

• C. cash flow statement.

Denali Limited, a manufacturing company, had the following income statement

information:

Revenue $4,000,000

Cost of goods sold $3,000,000

Other operating expenses $500,000

Interest expense $100,000

Tax expense $120,000

Denali ’ s gross profi t is equal to

A. $280,000.

B. $500,000.

C. $1,000,000.

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The Income Statement lists a businesses:

• Assets and Expenses

• Owner's Equity and Revenue

• Expenses and Net Assets

• Revenue, cost of goods and Expenses

Which of the following is not a type of revenue?

• Service Fee

• Commission

• Sales

• Rent paid

Net Profit is:

• Assets less Liabilities

• Gross Profit less Expenses

• Revenue less Liabilities

• Liabilities less Assets

If Sales = £100000 Cost of Goods = £25000, the Gross Profit will be:

• £75000

• £80000

• £70000

• £40000