Are you preparing for the TOEIC exam and looking to improve your reading skills, especially when it comes to analyzing quarterly earnings statements? Look no further! This practice test is designed to help you excel in TOEIC Reading Parts 1 and 2 while focusing on business-related vocabulary and concepts. Let’s dive into the questions and sharpen your skills for success.
Part 1: Incomplete Sentences
In this section, you’ll find 30 incomplete sentences. Choose the best word or phrase to complete each sentence.
-
The company’s quarterly earnings report __ a significant increase in revenue.
A) showed
B) showed up
C) showed off
D) showing -
Analysts __ the financial statements to identify trends and potential risks.
A) scrutinize
B) scrutinizing
C) scrutinized
D) scrutinization -
The CFO __ the company’s strong performance during the earnings call.
A) highlighted
B) highlighting
C) highlight
D) highlights -
Investors were pleased with the __ growth in net income compared to the previous quarter.
A) substantial
B) substantially
C) substance
D) substantiate -
The balance sheet __ a healthy cash position and low debt levels.
A) reflected
B) reflecting
C) reflective
D) reflection -
The company’s gross margin __ by 2% due to improved operational efficiency.
A) expanded
B) expansion
C) expanding
D) expands -
Despite market challenges, the firm managed to __ its market share in key segments.
A) increase
B) increasing
C) increased
D) increases -
The quarterly report __ both financial and non-financial key performance indicators.
A) included
B) including
C) include
D) includes -
Shareholders expressed concern over the __ increase in operating expenses.
A) unexpected
B) unexpectedly
C) unexpecting
D) unexpect -
The company’s research and development spending __ 15% of total revenue.
A) accounted for
B) accounted
C) accounting for
D) accounts for -
The CEO __ optimistic about the company’s future prospects during the earnings presentation.
A) remained
B) remaining
C) remain
D) remains -
The quarterly earnings report __ in line with market expectations.
A) came
B) coming
C) come
D) comes -
Analysts __ the impact of new product launches on the company’s bottom line.
A) evaluated
B) evaluating
C) evaluate
D) evaluation -
The company’s stock price __ following the release of the positive earnings report.
A) surged
B) surging
C) surge
D) surges -
The board of directors __ a quarterly dividend of $0.50 per share.
A) declared
B) declaring
C) declare
D) declares
how to review a quarterly business report
-
The firm’s international sales __ 40% of total revenue for the quarter.
A) represented
B) representing
C) represent
D) represents -
Investors closely __ the company’s earnings per share (EPS) as a key performance metric.
A) monitored
B) monitoring
C) monitor
D) monitors -
The quarterly report __ a detailed breakdown of revenue by product category.
A) provided
B) providing
C) provide
D) provides -
The company’s inventory turnover ratio __ compared to the previous quarter.
A) improved
B) improving
C) improve
D) improves -
Management __ cost-cutting measures to offset the impact of rising raw material prices.
A) implemented
B) implementing
C) implement
D) implements -
The firm’s liquidity ratio __ well above industry averages.
A) remained
B) remaining
C) remain
D) remains -
Analysts __ the company’s guidance for the next quarter to be conservative.
A) considered
B) considering
C) consider
D) considers -
The quarterly earnings call __ by a Q&A session with analysts and investors.
A) followed
B) following
C) follow
D) follows -
The company’s operating margin __ due to increased competition in key markets.
A) contracted
B) contracting
C) contract
D) contracts -
Management __ plans to expand into new geographic markets in the coming year.
A) outlined
B) outlining
C) outline
D) outlines -
The firm’s accounts receivable __ faster than in previous quarters.
A) turned over
B) turning over
C) turn over
D) turns over -
Investors __ positively to the company’s strong cash flow generation.
A) reacted
B) reacting
C) react
D) reacts -
The quarterly report __ the company’s progress on sustainability initiatives.
A) highlighted
B) highlighting
C) highlight
D) highlights -
The CFO __ confident about meeting the full-year financial targets.
A) expressed
B) expressing
C) express
D) expresses -
The company’s return on equity (ROE) __ a significant improvement in profitability.
A) demonstrated
B) demonstrating
C) demonstrate
D) demonstrates
TOEIC Reading Part 1: Incomplete Sentences
Part 2: Text Completion
In this section, you’ll find 4 short texts with 4 blanks each. Choose the best word or phrase to fill in each blank.
Text 1:
XYZ Corporation released its quarterly earnings report today, (31) __ better-than-expected results. The company’s revenue (32) __ by 15% year-over-year, reaching $1.2 billion. Net income (33) __ to $150 million, representing a 20% increase from the same period last year. The strong performance was (34) __ to successful product launches and expanded market share in key regions.
-
A) revealing
B) revealed
C) reveal
D) reveals -
A) grew
B) grown
C) grow
D) growing -
A) rose
B) rising
C) rise
D) risen -
A) attributed
B) attributing
C) attribute
D) attributes
Text 2:
Analysts (35) __ the quarterly report with enthusiasm, noting that XYZ Corporation (36) __ expectations in several key areas. The company’s gross margin (37) __ to 45%, up from 42% in the previous quarter. This improvement was largely due to increased operational efficiency and favorable raw material costs. The report also (38) __ that the company’s research and development spending increased by 10%, signaling a commitment to future innovation.
-
A) received
B) receiving
C) receive
D) receives -
A) exceeded
B) exceeding
C) exceed
D) exceeds -
A) expanded
B) expanding
C) expand
D) expands -
A) revealed
B) revealing
C) reveal
D) reveals
Text 3:
During the earnings call, XYZ Corporation’s CEO (39) __ the company’s strategic initiatives for the upcoming quarters. She (40) __ that the firm plans to enter three new markets in the next six months, which is expected to drive further growth. The CFO (41) __ that the company’s strong cash position will allow for increased investments in technology and talent acquisition. Investors (42) __ positively to the forward-looking statements, with the stock price rising 5% in after-hours trading.
-
A) outlined
B) outlining
C) outline
D) outlines -
A) announced
B) announcing
C) announce
D) announces -
A) added
B) adding
C) add
D) adds -
A) responded
B) responding
C) respond
D) responds
Text 4:
The quarterly earnings report also (43) __ XYZ Corporation’s progress on its sustainability goals. The company (44) __ its carbon emissions by 8% compared to the same quarter last year, putting it on track to meet its annual reduction target. Additionally, the report (45) __ that 30% of the company’s products now use recycled materials, up from 22% in the previous year. These achievements (46) __ well with investors who are increasingly focused on environmental, social, and governance (ESG) factors.
-
A) highlighted
B) highlighting
C) highlight
D) highlights -
A) reduced
B) reducing
C) reduce
D) reduces -
A) stated
B) stating
C) state
D) states -
A) resonated
B) resonating
C) resonate
D) resonates
Answer Keys
Part 1: Incomplete Sentences
- A) showed
- C) scrutinized
- A) highlighted
- A) substantial
- A) reflected
- A) expanded
- A) increase
- A) included
- A) unexpected
- A) accounted for
- A) remained
- A) came
- A) evaluated
- A) surged
- A) declared
- A) represented
- A) monitored
- A) provided
- A) improved
- A) implemented
- A) remained
- A) considered
- A) followed
- A) contracted
- A) outlined
- A) turned over
- A) reacted
- A) highlighted
- A) expressed
- A) demonstrated
Part 2: Text Completion
- A) revealing
- A) grew
- A) rose
- A) attributed
- A) received
- A) exceeded
- A) expanded
- A) revealed
- A) outlined
- A) announced
- A) added
- A) responded
- A) highlighted
- A) reduced
- A) stated
- A) resonated
By practicing with these TOEIC Reading Part 1 and 2 questions focused on quarterly earnings analysis, you’ll be better prepared to tackle similar topics in the actual exam. Remember to pay close attention to grammar, vocabulary, and context clues when selecting your answers. For more tips on how to review quarterly business reports effectively, check out our guide on how to review a quarterly business report. Keep practicing, and you’ll be well on your way to achieving a high score on the TOEIC Reading section!
