Sample Questions


1. To financial analysts, "net working capital" means the same thing as __________.

A. total assets

B. fixed assets

C. current assets

D. current assets minus current liabilities.

2. The ratio of shareholders funds to total assets of the company is called

A. Debt-equity ratio
B. Economic equity ratio
C. Liquidity ratio
D. None of the above

3. The definition of cash as used in Cash Flow Statements includes:

A. only cash balances.
B. only bank balances.
C. bank balances and bank overdrafts.
D. cash in hand plus bank balances less bank overdrafts.

4. What is interest on a bond known as?

A. return
B. yield
C. coupon
D. maturity value

5. Both the future and present value of a sum of money are based on

A. interest rate
B. number of time periods
C. both a and b
D. none of the above


Answers:      1 (D), 2 (B), 3 (D), 4 (C), 5 (C)

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