Business Financial Calculations Quiz
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What financial metric measures the efficiency and profitability of a business by comparing the net profit to the initial investment?

  • Ending Cash Balance
  • Run Rate
  • Burn rate
  • ROI (correct)

Which financial metric represents the amount of money a business has left after paying its expenses and debts?

  • Burn rate
  • Ending Cash Balance (correct)
  • Net Profit
  • ROI

What metric calculates how quickly a business is spending its available capital?

  • ROI
  • Net Profit
  • Ending Cash Balance
  • Run Rate (correct)

Which metric represents the amount of money that a business is losing per month?

<p>Burn rate (B)</p> Signup and view all the answers

What financial metric shows the difference between a skateboard company's total revenue and total expenses?

<p>Net Profit (B)</p> Signup and view all the answers

What is the formula to calculate the Net Profit for a business?

<p>Net Profit = Total Revenue - Total Expenses (B)</p> Signup and view all the answers

Which financial metric indicates how much money a business is losing per month?

<p>Burn Rate (C)</p> Signup and view all the answers

How can the Ending Cash Balance for a business be calculated?

<p>Ending Cash Balance = Beginning Cash Balance + Total Sales - Expenses (B)</p> Signup and view all the answers

What does the Run Rate for a business indicate?

<p>The rate at which a business is spending its available capital (A)</p> Signup and view all the answers

If a business has $1,200 in marketing costs and $3,100 in loan payments, what is the total of these expenses?

<p>$4,300 (C)</p> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Browser