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Business Financial Calculations Quiz
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Business Financial Calculations Quiz

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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</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</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</p> Signup and view all the answers

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

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

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