Bank Performance Evaluation Quiz

Which statement shows a company’s financial position at a specific point in time?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Equity

The income statement primarily reports:

• Assets and liabilities

• Cash inflows and outflows

• Revenues and expenses

• Shareholder’s equity

Cash flow from financing activities includes:

• Loan repayments and issuing shares

• Sales revenue

• Inventory purchases

• Tax payments

Current assets are best described as:

• Assets used for more than one year

• Assets easily converted to cash within a year

• Equity investments

• Long-term property

Liabilities represent:

• Company-owned resources

• Obligations to pay debts

• Shareholder’s equity

• Net income

Shareholder’s equity reflects:

• Company’s debt financing

• Ownership financing through shares

• Cash reserves

• Inventory value

The current ratio measures:

• Profitability of assets

• Ability to cover short-term obligations

• Efficiency of fixed assets

• Debt-to-equity balance

A quick ratio excludes which item?

• Cash

• Inventory

• Accounts receivable

• Current liabilities

Net working capital is calculated as:

• Current assets ÷ current liabilities

• Current assets – current liabilities

• Total assets – total liabilities

• Equity – debt

Inventory turnover ratio indicates:

• How often inventory is sold and replaced

• Liquidity of assets

• Debt repayment ability

• Profit margin