Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The amount a company earns from the investments of its shareholders is called return on equity.
Choose wisely. There is only one correct answer.
True. Return on equity indicates how well the investments are working for the company.
2.
Which financial ratio measures a company's stock value?
Choose wisely. There is only one correct answer.
Price-to-earnings ratio. Price-to-earnings ratio measures a company's stock value.
3.
Brokerages do not provide company report information.
Choose wisely. There is only one correct answer.
False. Brokerages generally do provide company report information.
4.
A balance sheet contains information on a corporation's assets and dividend payments.
Choose wisely. There is only one correct answer.
False. A balance sheet contains information on a corporation's assets and liabilities.
5.
Investors may wish to find company information from a news report rather than an annual report because it is less time-consuming and more accessible.
Choose wisely. There is only one correct answer.
True. Because news is reported daily and in numerous sources, it has this advantage.