CMC Financial Analysis & Business Performance

Question 1

What is the primary purpose of financial analysis?

Accepted Answer

Evaluating financial health for decision-making

Answer

Hiring new employees.

Answer

Planning holiday events.

Answer

Designing marketing flyers.

Question 2

Which document shows a company's financial position at a specific time?

Accepted Answer

Balance sheet

Answer

Income statement.

Answer

Marketing budget.

Answer

Employee schedule.

Question 3

Which ratio measures a company's ability to pay short-term obligations?

Accepted Answer

Current ratio

Answer

Debt-to-equity ratio.

Answer

Gross profit margin.

Answer

Inventory turnover.

Question 4

What is a key indicator of business performance?

Accepted Answer

Revenue growth

Answer

Number of office parties.

Answer

New furniture purchases.

Answer

Vacation policies.

Question 5

Which statement reports a company’s profitability?

Accepted Answer

Income statement

Answer

Cash flow statement.

Answer

Organizational chart.

Answer

Mission statement.

Question 6

What tool helps track business performance against goals?

Accepted Answer

Key Performance Indicators (KPIs)

Answer

Company handbook.

Answer

Job application form.

Answer

Expense report.

Question 7

Which financial metric shows how efficiently assets are used?

Accepted Answer

Return on Assets (ROA)

Answer

Net profit margin.

Answer

Operating expenses.

Answer

Sales tax.

Question 8

What is cash flow management?

Accepted Answer

Managing inflows and outflows of cash

Answer

Buying office supplies.

Answer

Conducting staff evaluations.

Answer

Ordering lunches.

Question 9

Why is benchmarking important in business performance evaluation?

Accepted Answer

Measure against industry best practices

Answer

Create slogans.

Answer

Plan company picnics.

Answer

Increase vacation days.