Robert Half Assessment Test Robert Half Assessment Financial Analysis Questions and Answers

Question 1

What does a current ratio of less than 1.0 indicate about a company?

Accepted Answer

The company cannot cover its short-term liabilities with its current assets

Answer

The company has more current assets than current liabilities

Answer

The company is highly profitable

Answer

The company has no long-term debt

Question 2

Which financial statement shows a company's revenues and expenses over a specific period?

Accepted Answer

Income Statement

Answer

Balance Sheet

Answer

Cash Flow Statement

Answer

Statement of Retained Earnings

Question 3

What does EBITDA stand for?

Accepted Answer

Earnings Before Interest, Taxes, Depreciation, and Amortization

Answer

Earnings Before Interest, Taxes, Dividends, and Amortization

Answer

Equity Balance Including Total Debt and Assets

Answer

Estimated Budget Including Taxes, Depreciation, and Allowances

Question 4

What does a negative free cash flow indicate?

Accepted Answer

The company is spending more cash than it generates from operations

Answer

The company is generating more cash than it spends

Answer

The company has no debt obligations

Answer

The company's stock price is declining

Question 5

What is the debt-to-equity (D/E) ratio used to measure?

Accepted Answer

The proportion of financing that comes from creditors versus shareholders

Answer

How much profit a company makes per dollar of equity

Answer

How quickly a company collects its receivables

Answer

The total market value of a company's shares

Question 6

Which of the following best describes 'working capital'?

Accepted Answer

Current assets minus current liabilities

Answer

Total assets minus total liabilities

Answer

Net income plus depreciation

Answer

Long-term debt minus equity