What’s better than using your phone while being online and learning something new? We often find ourselves scrolling through the internet and doing nothing, but we have got something exciting for you. In this article, find out some fun yet interesting general knowledge questions and answers about finance to enhance your skills. Read on!
1. Common-size financial statements help an analyst to do what?
Answer: Compare the mix of liabilities, assets, revenue, capital and expenses within a company over a certain period or within a given industry without respect to size.
2. Which ratio would be least useful in determining a company’s ability to pay its expenses and liabilities?
Answer: Price-earnings ratio
3. If a company is profitable and is effectively using leverage, what ratio is likely to be the largest?
Answer: Return on common stockholder’s equity
4. What is also known as a “home equity instalment loan” or a “second mortgage,” is a type of consumer debt?
Answer: Home equity loan
5. What don’t common liquidity ratios include?
Answer: The future ratio
6. What does ISO stand for?
Answer: International Standard Organization
7. What is the name of investment that the firm can quickly convert into cash balances?
Answer: Security investments
8. A bond that pays a high yield due to significant credit risk is called?
Answer: Junk bond
9. What affects bond prices?
Answer: The current interest rate and the credit quality of the issuer
10. What is a debt security issue by a corporation that is not secured by specific assets, but rather by the general credit of the corporation?
Answer: Debenture
11. What is NOT a fact for Equity?
Answer: Shareholder’s Equity= Total Assets + Total Liabilities
12. What is Gross Margin?
Answer: Gross Margin= Net Sales – Cost of goods sold
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