QUARTER 1 Review - FABM2

Which financial statement shows the company’s revenues and expenses during a period?

• Balance Sheet

• Statement of Cash Flows

• Income Statement

• Statement of Owner’s Equity

What does the Balance Sheet present?

• Cash flow activity

• Financial position at a specific date

• Net income

• Owner’s drawings

Which of the following is NOT part of financial statements?

• Statement of Owner’s Equity

• Income Statement

• Trial Balance

• Statement of Cash Flows

Which ratio measures a company’s liquidity?

• Return on Equity

• Debt Ratio

• Current Ratio

• Gross Profit Ratio

The formula for the Current Ratio is:

• Assets ÷ Liabilities

• Current Assets ÷ Current Liabilities

• Total Liabilities ÷ Total Assets

• Net Profit ÷ Sales

Which ratio helps analyze profitability?

• Quick Ratio

• Gross Profit Margin

• Debt to Equity Ratio

• Current Ratio

Which of the following accounts will be found in the Statement of Owner’s Equity?

• Accounts Payable

• Drawings

• Sales Revenue

• Utilities Expense

What financial statement explains changes in the owner’s capital during the year?

• Income Statement

• Balance Sheet

• Statement of Owner’s Equity

• Cash Flow Statement

Which is considered a solvency ratio?

• Debt to Asset Ratio

• Current Ratio

• Gross Margin

• Accounts Receivable Turnover

A financial tool that shows how often a business collects its receivables:

• Working Capital

• Acid-Test Ratio

• Inventory Turnover

• Accounts Receivable Turnover