April 2011
Beginner
80 pages
2h 36m
English
Now it’s time to retake the finance quiz that appeared in the first part of this guide. It will give you an indication of what you’ve learned and what you might need to study up on. The answers follow.
1. The income statement measures:
a. Profitability
b. Assets and liabilities
c. Cash
d. All of the above
2. A sale on credit ends up on the income statement as revenue and as what on the balance sheet?
a. Accounts receivable
b. Long-term assets
c. Short-term liability
d. Operating cash flow
3. What happens when a company is profitable but collection lags behind payments to vendors?
a. The company is OK because profits always become cash
b. The company stands a good chance of running ...
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