Crowdly

Income Statement

Balance Sheet

A company has total assets of €14k. It carries a bank loan of €8k and other liabilities of €2k. What is shareholders' equity?

€10k

€12k

€4k

€6k

Which of the following best explains why organisations use budgets?

To record every financial transaction in detail

To limit employee access to resources

To plan, control, and evaluate financial performance

To increase the value of company shares

A company reports the following:

- Revenue: 100

- Direct costs: 50

- SG&A expenses: 10

- CAPEX: 40

What is the EBITDA?

100

Which of the following are important activities during the budget cycle? (Choose two)

Updating forecasts based on actual performance

Reviewing actual results only when significant issues arise

Estimating future revenues and costs

Focusing exclusively on short-term cash positions

Which of the following is an example of a Key Performance Indicator (KPI) in financial performance management?

The number of employees in the HR department

The number of social media followers

EBITDA margin

The colour scheme of the annual report

A company had budgeted 50 for travel expenses, but the actual expense was 65. What is the variance?

115 total

65 favourable

15 favourable

15 unfavourable

Which statement best describes the accrual basis of accounting?

All future transactions are excluded

Transactions are recorded when they occur, regardless of cash movement

Only capital transactions are recorded

Transactions are recorded only when cash is received or paid

Which of the following is true about financial communication?

It applies only to companies listed on a stock exchange

It includes sharing quarterly and annual reports

It is only used internally by accountants

It excludes all forward-looking statements

What is the primary purpose of WACC in financial decision-making?

To represent the minimum return a company must generate to satisfy all its capital providers

To calculate the total tax a company pays on its annual profits

To measure a company's day-to-day operational efficiency

To determine the maximum level of debt a company can safely carry