Training test for current control 3

Which theory of the term structure of interest rates assumes that investors have no preference for any particular maturity and are only concerned with the expected return?

• Expectations theory
• Market segmentation theory
• Liquidity preference theory
• None of the above

What is shareholder’s equity?

• The carrying or book value of the ownership of a company
• A summary of operating performance
• Explicit contracts that a company has
• A financial statement that provides aggregate data regarding all cash inflows

Select the option that contains only liabilities.

• Payables, provisions
• Taxes, property
• Provisions, equipment
• Inventories, non-controlling interests

Identify 4 building blocks of analysis.

• Liquidity & efficiency, solvency, market, profitability
• Market, validity, efficiency, credibility
• Liquidity, reliability, solvency, validity
• Profitability, stability, modernity, market

What is the primary difference between GAAP and IFRS systems?

• GAAP is rules-based and IFRS is principle-based
• IFRS doesn't include accounting characteristics
• GAAP doesn't include the inventory expenses
• IFRS is rules-based and GAAP is principle-based

IFRS is not standard in what country or region?

• The United States
• The European Union
• Japan
• South Korea

What are the three sections of the Statement of Cash Flows?

• Operating Activities, Financing Activities, and Investing Activities
• Income, Expense, and Equity
• Assets, Liabilities, and Equity
• Cash Inflows, Cash Outflows, and Net Cash Flow

Which financial statement shows the cash inflows and outflows of a business?

• Statement of Cash Flows
• Income Statement
• Statement of Retained Earnings
• Balance Sheet

What is financial analysis?

• The process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability
• The process of planning businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability
• The process of organizing businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability
• The process of controlling businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability

What do we call cash, cash equivalents, accounts receivable, stock inventory, pre-paid liabilities and other liquid assets with simple words?

• Current assets
• Current ratio
• Current liabilities
• Operating profit