ABM Cup Train 1

What is the formula for calculating the current ratio?

What is the primary objective of financial accounting?

• Maximizing shareholder wealth

• Providing information for internal decision-making

• Ensuring compliance with tax regulations

• Reporting accurate and reliable financial information to external users

Which of the following is NOT a function of human resource management?

• a) Recruitment and selection

• b) Financial planning and analysis

• c) Training and development

• d) Performance appraisal

Which financial statement represents a snapshot of a company's financial position at a specific point in time?

• Income Statement

• Statement of Cash Flows

• Statement of Changes in Equity

• Balance Sheet

Which of the following is NOT a characteristic of a limited liability company (LLC)?

• a) Limited liability for owners

• b) Pass-through taxation

• c) Unlimited number of owners

• d) Flexibility in management structure

Which of the following is an example of a non-financial performance measure?

• a) Return on Investment (ROI)

• b) Earnings per Share (EPS)

• c) Customer Satisfaction Score

• d) Debt-to-Equity Ratio

What is the purpose of a mission statement in strategic management?

• a) To define a company's long-term goals and objectives

• b) To allocate resources efficiently

• c) To analyze market trends

• d) To evaluate employee performance

What is the purpose of a break-even analysis in business?

• To determine the optimal pricing strategy

• To identify the point where total revenue equals total costs

• To evaluate the performance of a company's marketing efforts

• To assess the effectiveness of cost-cutting measures

What does the term "leverage" refer to in finance?

• a) The use of debt to finance investments

• b) The degree of risk associated with an investment

• c) The process of increasing sales revenue

• d) The level of competition in a market

What is the purpose of a cash budget in financial planning?

• a) To analyze market trends

• b) To track actual cash flows against projected cash flows

• c) To forecast demand for products

• d) To evaluate the efficiency of production processes