Basics Beginner:
Sources of Company Information
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1.
A corporation's return on assets can be found in its annual stockholder report.
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True
False
True. Among many other data, such as net revenue and net earnings, is return on assets.
2.
A balance sheet contains information on a corporation's assets and dividend payments.
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True
False
False. A balance sheet contains information on a corporation's assets and liabilities.
3.
Which financial ratio measures a company's stock value?
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Debt-to-equity ratio
Price-to-earnings ratio
Current ratio
Operating profit margin ratio
Price-to-earnings ratio. Price-to-earnings ratio measures a company's stock value.
4.
A company's liquidity is measured by dividing its _______ by its _______.
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Liabilities/ net worth
Current assets/current liabilities
Net profit/shares outstanding
Annual earnings/total assets
Current assets/current liabilities. The greater the liquidity, the greater the amount of working capital.
5.
You can receive company reports through several subscription services.
Choose wisely. There is only one correct answer.
True
False
True. You receive these reports periodically from subscription services.
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