Business Acumen Quiz

  • Business Acumen Assessment

    There are 18 questions. After you have answered the last question, you will get your Business Acumen score.

    There is no data being collected anywhere other than a general aggregate across all who take the quiz. Good luck and have fun!

  • 1. What does the income statement primarily show?*

  • Answer: The income statement primarily shows revenue and expenses over time.

  • 2. What does the balance sheet tells us?*

  • Answer: How much the company's assets are worth, and how those assets were financed

  • 3. Which of the following statements is potentially false?*

  • Answer: "If revenues are growing, you will always have positive cash flow" is potentially false.

  • 4. If a company’s gross margin is shrinking, what might be a likely cause?*

  • Answer: Higher cost of goods sold 

  • 5. What does EBITDA stand for?*

  • Answer: Earnings before interest, taxes, depreciation, and amortization

  • 6. Why is cash flow different from profit?*

  • Answer: Cash flow reflects actual movement of cash, while profit includes non-cash items 

  • 7. A company’s inventory turnover is decreasing. This likely means:*

  • Answer: Inventory is sitting longer before being sold 

  • 8. What is a breakeven point?*

  • Answer: Where total costs equal total revenue 

  • 9. Which ratio best indicates a company's short-term liquidity?*

  • Answer: Current ratio 

  • 10. A company seeking to increase its gross margins could?*

  • Answer: Decrease production costs 

  • 11. Improving profitability is the responsibility of who at our company?*

  • Answer: All Employees 

  • 12. A publicly traded company's shareholders are interested in the Return on Equity number because it tells them?*

  • Answer: The return earned on the capital shareholders have invested in the company 

  • 13. If some of our customers start taking longer to pay our company, what is the impact on our cash flow?*

  • Answer: Decreases cash flow

  • 14. In financial statements, assets equals?*

  • Answer: Equity plus Liabilities

  • 15. In accounting, depreciation is often referred to as?*

  • Answer: Non-cash expense 

  • 16. Most large companies record product revenues when?*

  • Answer: When the products are shipped to the customer 

  • 17. Which indicator tells us how well a company is doing collecting cash from customers?*

  • Answer: Days sales outstanding 

  • 18. (Last question!) If a company is growing revenues, but its profit margin is declining, it most likely means?*

  • Answer: Costs are growing faster than revenues 

  • Your Business Acumen Score: {AverageScore3}%

    You got {NumberCorrect3} correct.

     

      

  • Scoring Key 

    Number of Correct answers

    17 - 18 Exceptional business acumen
    15 - 16 Strong business acumen
    13 - 14 Moderate business acumen
    11 - 12 Basic business acumen
    10 or below Low business acumen
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