FlexiQuiz - QAI - Module #7 Quiz

1. What type of financial statement provides information on a company's operating, investing, and financing activities for a specific period?

Balance Sheet

Statement of Shareholder's Equity

Income Statement

Cash Flow Statement

2. What does Net Working Capital (NWC) measure on a Balance Sheet?

A company's ability to meet short-term obligations

A company's total equity

A company's total assets

A company's long-term liabilities

3. Which of the following is one of the three main categories of a cash flow statement?

Cash from Customer Relationships

Cash from Marketing Activities

Cash from Accounts Receivable

Cash from Operating Activities

4. What is the formula for calculating Gross Margin?

Net Income + Expenses

Earnings Before Taxes

Revenue - Cost of Goods Sold

Gross Profit - Cost of Goods Sold

5. What is the primary purpose of a cash flow statement?

To track cash usage and cash generation during a specific period

To assess a company's total assets over a specific period

To calculate a company's net income over a specific period

To report a company's total revenue over a specific period

6. What does the equation "Assets = Liabilities + Equity" represent on a Balance Sheet?

The accounting identity of a Balance Sheet

The company's total assets

A company's total revenue

The company's total liabilities

7. What financial statement provides information on a company's financial position, performance, and cash flow for a specific period in the past?

Income Statement

Statement of Shareholder's Equity

Balance Sheet

Cash Flow Statement

8. What accounting method records transactions when they occur, regardless of when cash is received or paid out?

Net Income Accounting

Cash Accounting

Accrual Accounting

Non-Cash Accounting

9. What does SG&A stand for in financial analysis?

Shareholder's Gross Assessment

Sales and Gross Analysis

Selling, General, and Assets

Sales, General, and Administrative

10. What does EBIT stand for?

None of the answers are correct

Earnings Before Interest and Taxes

Earnings Before Income and Taxes

Earnings Before Inflation and Taxes

11. What is the formula for calculating Net Income on an income statement?

Gross Margin - SG&A

Net Income + Expenses

Revenue - Expenses

Earnings Before Taxes - Taxes

12. Which of the following is considered a current asset on a Balance Sheet?

Equipment

Real Estate

Long-term loans

Inventory

13. What financial statement provides information on a company's profitability over a specific period of time?

Income Statement

Balance Sheet

Cash Flow Statement

Statement of Shareholder's Equity

14. Private Investor B (PIB) is considering an investment in CompanyY, which operates a subscription-based newsletter service. PIB has gathered the following financial information from CompanyY:

Monthly subscription fee charged to customers: $19.99
Average subscription duration: 12 months
Monthly costs associated with providing the newsletter service: $2.50 per subscriber
Customer Acquisition Costs (CAC): $50 per new subscriber

What is the approximate Customer Lifetime Value (CLV)

$240

$300

$210

$170

15. What is Customer Acquisition Cost (CAC)?

The total profit generated by a customer over their lifetime

The average number of purchases per year by a customer

Marketing and sales expenses related to acquiring new customers

The price a customer is willing to pay for a product or service

16. What is the primary purpose of financial analysis for investors?

Assessing the company's performance

Assessing the company's market share

Assessing the company's customer satisfaction

Determining the company's environmental impact

17. Which of the following is NOT one of the key financial statements used in financial analysis?

Cash Flow Statement

Balance Sheet

Income Statement

Marketing Statement

18. What does "unit economics" refer to in a business context?

The overall financial performance of a company

The profitability of a specific customer

The analysis of a company's marketing and sales expenses

The analysis of a product or service's cost and revenue

19. What financial metric is considered a rough approximation of operating cash flow?

EBITDA

Earnings Per Share

Net Income

Gross Margins

20. Customer Lifetime Value (CLV) is calculated by dividing the total revenue by the number of customers

True

False

21. Which financial statement is used for forward-looking estimates of a company's financial performance?

Balance Sheet

Statement of Shareholders' Equity

Income Statement

Cash Flow Statement

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