Robert Half Assessment Financial Analysis Questions and Answers Flashcards
6 cards from real Robert Half Assessment Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Robert Half Assessment Financial Analysis Questions and Answers flashcards as text
What does a current ratio of less than 1.0 indicate about a company?
Answer: The company cannot cover its short-term liabilities with its current assets
A current ratio below 1.0 means the company's current liabilities exceed its current assets, signaling potential liquidity problems.
Which financial statement shows a company's revenues and expenses over a specific period?
Answer: Income Statement
The income statement (also called a profit and loss statement) summarizes revenues, costs, and expenses to show net profit or loss.
What does EBITDA stand for?
Answer: Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA measures a company's core operational profitability by excluding non-operating and non-cash expenses.
What does a negative free cash flow indicate?
Answer: The company is spending more cash than it generates from operations
Negative free cash flow means the company is consuming more cash than its operations produce, which may require financing.
What is the debt-to-equity (D/E) ratio used to measure?
Answer: The proportion of financing that comes from creditors versus shareholders
The D/E ratio shows how leveraged a company is — a higher ratio indicates more reliance on debt financing.
Which of the following best describes 'working capital'?
Answer: Current assets minus current liabilities
Working capital measures a company's short-term financial health by comparing what it owns versus what it owes in the near term.