Practice Test GeeksCPFM Practice Test
← All CPFM Flashcard Decks

Financial Statement Analysis Flashcards

7 cards from real CPFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Statement Analysis flashcards as text

  1. The current ratio is calculated as which of the following?

    Answer: Current assets divided by current liabilities

    The current ratio equals current assets divided by current liabilities.

  2. The quick ratio differs from the current ratio because it excludes which asset?

    Answer: Inventory

    The quick ratio removes inventory because it is the least liquid current asset.

  3. A company's gross profit margin is best calculated as which formula?

    Answer: Gross profit divided by revenue

    Gross profit margin equals gross profit divided by revenue.

  4. Which financial statement reports a company's revenues and expenses over a period?

    Answer: Income statement

    The income statement summarizes revenues and expenses over a reporting period.

  5. Return on equity (ROE) measures profitability relative to which item?

    Answer: Shareholders' equity

    ROE equals net income divided by shareholders' equity.

  6. The debt-to-equity ratio is primarily used to assess a company's:

    Answer: Financial leverage

    Debt-to-equity measures the degree of financial leverage and capital structure risk.

  7. Horizontal analysis of financial statements compares data across:

    Answer: Multiple periods to identify trends

    Horizontal analysis examines changes in financial data over multiple periods to reveal trends.