CHRO Finance

5. Financial statements include all of the following except:

• Income statement

• Balance Sheet

• Inventory list

• Cash flow statement

5. Which financial statement shows a company's financial position at a specific point in time?

• Income statement

• Balance Sheet

• Cash flow

• Statement of changes in equity

The income statement is also known as

• Statement of financial position

• Statement of cash flows

• Profit and loss statement

• 7. Statement of retained earnings

Which of the following is NOT found on an income statement?

• Revenue

• Expenses

• Assets

• Net Income

The balance sheet equation is:

• Assets = Revenue - Expenses

• Assets = Liabilities + Equity

• Assets = Revenue + Expenses

• Assets = Liabilities - Equity

The cash flow statement is divided into which three activities?

• Operating, investing, and financing

• Current, non-current, and long-term

• Revenue, expenses, and profit

• Assets, liabilities, and equity

Liquidity refers to:

• The ability to convert assets into cash quickly

• The profitability of a company

• The amount of debt a company has

• 13. The total value of assets a company owns

Working capital is calculated as

• Total assets - Total liabilities

• Current liabilities - Current assets

• Revenue - Expenses

• Current assets - Current liabilities

The time value of money concept states that

• Money's value decreases over time

• Money's value remains constant over time

• Money available now is worth more than the same amount in the future

• Money's value increases over time

Which formula is used to calculate the future value of a sum of money?

• PV = FV / (1 + r)^n

• FV = PV * (1 + r)^n

• PV = FV * (1 + r)^n

• FV = PV / (1 + r)^n