The company importing the good.

What does the current ratio measure?

Ability to pay short-term obligations

What is the purpose of an income statement?

Show company's profitability over a period

What is the purpose of a balance sheet?

Show assets, liabilities, and equity

What is the gross profit on an income statement?

Revenue minus cost of goods sold

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Financial Literacy

35 termsStudBud Administration12 plays

Test your knowledge on personal finance and money management

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Questions 35

Answers

1
What does inflation affect?
Purchasing power
Savings rate
Debt amount
Credit score
2
What is compound interest?
Interest on principal
Interest on interest
Interest on savings
Interest on debt
3
What does the cash flow statement track?
Cash from financing activities
Cash inflows and outflows
Cash from core business operations
Cash from purchase or sale of long-term assets
4
What is an emergency fund for?
Unexpected expenses
Daily expenses
Investments
Taxes
5
True or false: Debt is always bad.
False
True
6
What is an investment?
Monthly budget
Asset purchase
Debt payment
Savings account
7
What is Canada's biggest import from the US?
Cars and automotive parts
Pharmaceutical products
McDonald's Big Macs
Computers and IT equipment
8
Who is the current Secretary of Commerce?
Ben Carson
Howard Lutnick
Donald Trump
Hilary Clinton
9
The price of oil is going down
True
False
10
What are business taxes paid on?
Profit
Debt
Investments
Savings
11
What is an asset?
Debt owed
Interest earned
Anything of value
Monthly expenses
12
What do stocks represent?
Monthly budget
Debt obligation
Company ownership
Savings account
13
Tyler the Creator has nine albums
False
True
14
What are the components of a balance sheet?
Cash inflows, outflows, net cash flow
Assets, liabilities, equity
Operating expenses, net income
Gross profit, operating income
15
Who pays a tariff?
The country importing the good.
The country exporting a good.
The company importing the good.
16
Where is Tyler the Creator from?
Seminole, OK
Long Beach, California
Hawthorne, California
Hawkins, Indiana
17
Does the balance sheet show a company's cash inflows and outflows?
False
True
18
The balance sheet shows a company's profitability over a specific period.
True
False
19
What is a liability?
Savings account
Investment
Financial obligation
Income source
20
What is the principal amount?
Original amount
Monthly payment
Interest earned
Debt owed
21
What does APR include?
Debt amount
Annual interest rate
Credit score
Monthly payment
22
True or false: Paying late affects credit score
False
True
23
How often should you review your budget?
Once a year
Only when needed
Every month
Never
24
What does the current ratio measure?
Owners' residual interest
Efficiency in using assets
Proportion of equity and debt
Ability to pay obligations
25
What does the current ratio measure?
Ability to pay short-term obligations
Efficiency in using assets
Owners' residual interest in the company
Proportion of assets financed by debt
26
What is the purpose of an income statement?
Show company's profitability over a period
Measure liquidity and solvency
Indicate financial health of the company
Assess changes in financial position
27
What is the purpose of a balance sheet?
Compare income statements
Analyze financial ratios
Assess profitability over time
Show assets, liabilities, and equity
28
What is the purpose of an income statement?
To show financial position
To analyze cash flow
To assess liquidity
To calculate profitability
29
What is the gross profit on an income statement?
Revenue minus cost of goods sold
Net income minus income tax expense
Gross profit minus operating expenses
Total liabilities divided by shareholders' equity
30
What does a credit score evaluate?
Creditworthiness
Investment risk
Income level
Savings amount
31
True or false: Using cash can help you stick to a budget.
False
True
32
Trump has announced a tariff on some EU products. How much will it be?
10%
200%
5%
50%
33
Who is the governor of Washington State?
Dave R
Alexander Hamilton
Bob Ferguson
Christine Gregoire
34
How is net worth calculated?
Income minus expenses
Debt minus interest
Assets minus liabilities
Savings plus investments
35
What does a savings account do?
Reduces debt
Pays interest
Tracks expenses
Charges fees

Financial Literacy Flashcards | StudBud