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PEREGRINE EXAM REVIEW DAY 1 EXAM QUESTIONS WITH COMPLETE SOLUTIONS
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PEREGRINE EXAM REVIEW DAY 1 EXAM QUESTIONS WITH COMPLETE SOLUTIONS
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ESTUDYPEREGRINE EXAM REVIEW DAY 1 EXAM QUESTIONS
WITH COMPLETE SOLUTIONS
1. **What does balance sheet analysis involve?**
- A. Analysis of assets, liabilities, and equity
- B. Analysis of cash flows and revenues
- C. Analysis of market trends and consumer behavior
- D. Analysis of investment risks
**Answer: A. Analysis of assets, liabilities, and equity**
2. **Balance sheet analysis is typically done:**
- A. Annually or quarterly
- B. Monthly
- C. Weekly
- D. Daily
**Answer: A. Annually or quarterly**
3. **Who benefits from balance sheet analysis?**
- A. Investors, bankers, and brokers
- B. Only investors
- C. Only company employees
- D. Only government agencies
**Answer: A. Investors, bankers, and brokers**
4. **The Sarbanes-Oxley Act was created in 2002 to:**
- A. Protect shareholders
- B. Regulate interest rates
- C. Control inflation
- D. Manage currency exchange
**Answer: A. Protect shareholders**
5. **What are dividends?**
- A. A sum of money paid regularly by a company to its shareholders out of its profits
- B. A type of loan provided by a bank
- C. An investment in company stock
- D. A tax on company earnings
,ESTUDY
**Answer: A. A sum of money paid regularly by a company to its shareholders out of its profits**
6. **Dividends can be allocated as:**
- A. Fixed amount per share
- B. Variable amount per share
- C. Percentage of revenue
- D. Percentage of profit
**Answer: A. Fixed amount per share**
7. **Dividends can only be received:**
- A. One or more regular payment streams
- B. As a one-time payment
- C. As a discount on stock purchases
- D. Through a special dividend plan
**Answer: A. One or more regular payment streams**
8. **A cash dividend is:**
- A. Paid out in currency of the company
- B. Paid out in stock
- C. Paid out in property
- D. Paid out as a discount
**Answer: A. Paid out in currency of the company**
9. **Are cash dividends usually taxable?**
- A. Yes
- B. No
**Answer: A. Yes**
10. **A stock dividend is:**
- A. Paid out in the form of stock
- B. Paid out in cash
- C. Paid out in property
- D. Paid out as a coupon
**Answer: A. Paid out in the form of stock**
11. **A property dividend is:**
, ESTUDY
- A. Paid out in the form of an asset
- B. Paid out in cash
- C. Paid out in stock
- D. Paid out as a bond
**Answer: A. Paid out in the form of an asset**
12. **An interim dividend is:**
- A. Made before a company's annual general meeting and final financial statement
- B. Made after a company's annual general meeting
- C. Paid annually
- D. Paid only if the company has high profits
**Answer: A. Made before a company's annual general meeting and final financial statement**
13. **Common stock:**
- A. Allows owners to vote at shareholder meetings and receive dividends
- B. Provides fixed interest payments
- C. Is issued by the government
- D. Offers tax-free income
**Answer: A. Allows owners to vote at shareholder meetings and receive dividends**
14. **Preferred stock:**
- A. Gives stockholders preference in earnings and other rights
- B. Has no voting rights
- C. Is not eligible for dividends
- D. Is issued only during economic downturns
**Answer: A. Gives stockholders preference in earnings and other rights**
15. **Growth stock:**
- A. Has earnings that grow faster than the market average
- B. Pays high dividends
- C. Is issued by established companies
- D. Has a low market price
**Answer: A. Has earnings that grow faster than the market average**
16. **Income stock:**
- A. Pays higher-than-average dividends compared to other stock issues
- B. Has low earnings growth
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