Fundamental Analysis Quiz

Evaluating financial statements: What is the purpose of a balance sheet?

• To track customer satisfaction

• To provide a snapshot of a company's financial position

• To assess market share

• To measure employee productivity

Evaluating financial statements: What does the income statement show?

• It shows the company's revenues, expenses, and net income over a specific period of time.

• It shows the company's stock price and market capitalization

• It shows the company's customer satisfaction and brand loyalty

• It shows the company's total assets and liabilities

Evaluating financial statements: What is the significance of cash flow statement?

• It provides insights into a company's long-term investment strategy.

• It shows the company's marketing and advertising expenses.

• It indicates the company's total revenue and profit.

• It provides insights into a company's liquidity and ability to meet its short-term obligations.

Evaluating financial statements: How can you calculate a company's profitability ratio?

• Total assets divided by total liabilities

• Net income divided by revenue

• Gross profit divided by total expenses

• Operating income divided by total assets

Evaluating financial statements: What is the importance of analyzing a company's financial ratios?

• To determine the company's favorite color

• To decide which products to discontinue

• To see if the CEO is left-handed

• To assess the company's financial health, performance, and efficiency.

Analyzing company performance: What factors can affect a company's stock price?

• Customer satisfaction, advertising budget, and CEO's personal life

• Company earnings, economic conditions, industry trends, and market sentiment

• Weather conditions, political stability, and employee satisfaction

• Number of employees, office location, and company logo design

Analyzing company performance: How can you assess a company's competitive advantage?

• By looking at its outdated technology and practices

• By analyzing its high employee turnover rate

• By assessing its lack of innovation and creativity

• By analyzing its unique strengths and advantages

Analyzing company performance: What are the key components of a SWOT analysis for a company?

• Strengths, Weaknesses, Opportunities, and Threats

• Marketing, Sales, Production, Distribution

• Customers, Suppliers, Competitors, Regulators

• Assets, Liabilities, Revenue, Expenses

Analyzing company performance: How can you evaluate a company's management team?

• By evaluating their fashion sense and personal style

• By analyzing their experience, track record, decision-making skills, and ability to execute the company's strategy.

• By checking their social media following and popularity

• By asking their friends and family for their opinion

Analyzing company performance: What are the key indicators of a company's financial health?

• Number of employees

• Company's social media followers

• CEO's salary

• Revenue growth, profit margins, debt levels, cash flow, and return on equity