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Finance for Non-Financial Professionals Quiz

Finance for Non-Financial Professionals Quiz Answer. In this post you will get Quiz & Assignment  Answer Of Finance for Non-Financial Professionals

 

Finance for Non-Financial Professionals Quiz

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Module 1 Quiz

1.
Question 1
Which of the following is referred to as the Accounting Equation?

1 point

  • Assets = Liabilities + Equity
  • Equity = Liabilities + Assets
  • Liabilities = Assets + Equity
  • Assets = Liabilities – Equity

2.
Question 2
Which of the following make up the Finance Equation? (select all that apply)

1 point

  • Revenues = Price x Volume
  • Costs = Fixed + Variable
  • Profit = Revenues – Costs
  • Income = Sales – COGS

3.
Question 3
Which of the following are referred to as the building blocks of accounting? (select all that apply)

1 point

  • Assets
  • Debits
  • Credits
  • Liabilities
  • Equity

4.
Question 4
Which of the following is NOT one of the four Financial Statements?

1 point

  • Income Statement
  • Balance Sheet
  • Statement of Accounts
  • Statement of Cash Flows
  • Shareholder’s Equity

5.
Question 5
Generally Accepted Accounting Principles or GAAP are:

1 point

  • Accounting rules enforced by law
  • Accounting principles and guidelines
  • Enforced by law in some countries but not in others
  • The only way to be sure your books are correct

6.
Question 6
The balance sheet is the representation of what?

1 point

  • the accounting equation
  • company profits
  • shareholder’s equity
  • company’s cash flow

7.
Question 7
Consider this example. Soriyah is an entrepreneur who has just established her own company selling imported Persian rugs. She names her business Rugs of the World and invests $325,000 in the company in exchange for all of its newly issued shares.

Which of the following statements are true?

1 point

  • Assets and equity are both recorded as $325,000
  • Assets are recorded as $325,000
  • Equity is recorded as $325,000
  • Liabilities are recorded as $325,000
  • All of the statements are true

8.
Question 8
In one of the videos, the instructor says that “in Accounting you can have minus $1,000,000, but in Finance you can’t.” This statement explains what?

1 point

  • Accounting is theory but Finance is practice
  • Finance looks at financial performance whereas Accounting records the transactions
  • Balance sheets can be deceptive
  • Most income statements are only approximations

9.
Question 9
Which of these is a snapshot of a company’s finances at a particular point in time?

1 point

  • Balance sheet
  • Income statement
  • Statement of shareholders’ equity
  • GAAP

 

Module 2 Quiz

1.
Question 1
What is most commonly used when large batches of nearly identical items are being produced?

1 point

Process Costing

Standard Costing

Job Order Costing

Batch Costing

2.
Question 2
What uses direct costs and ALL overhead costs?

1 point

Standard Costing

Absorption Costing

Full Costing

Direct + Costing

3.
Question 3
To calculate break-even you need the following: (select all that apply)

1 point

Fixed Costs

Variable Costs

Price Per Unit

Inflation rate

Cash flow

4.
Question 4
When a business is going well and running near capacity, full costing should be used and products should be priced at or below their full cost.

1 point

True

False

5.
Question 5
Understanding costing (and pricing) options allows us to better respond to the demands of our sector.

1 point

True

False

6.
Question 6
Which of these cost methods does the instructor suggest a pizza business might use, given the variability of the cost of cheese?

1 point

Standard costing

Job order costing

Direct costing

Unit costing

7.
Question 7
In this cost allocation method, the pizza business owner will include the cost of the ingredients of the pizza, but will not include things like rent and salaries.

1 point

Direct costing

Absorption costing

Full costing

Average costing

8.
Question 8
Todd owns a small factory that makes basketballs for professional teams. He likely uses what method for assigning costs?

1 point

Process costing, since his products are
nearly identical

Standard costing, due to large variances in his
production

Job order costing, since the number of basketballs
produced varies from month to month

9.
Question 9
In calculating a break-even analysis, you must take into account what pieces of information? (Select all that apply)

1 point

Fixed costs

Variable costs

Discounted costs

Marginal costs

Opportunity costs

 

 

Module 3 Quiz

1.
Question 1
_____________________ ratios help us understand a company’s ability to turn short-term assets into cash.

1 point

Liquidity

Asset Turnover

Profitability

Debt

2.
Question 2
_____________________ ratios help us understand a company’s debt load as well as its mix of equity and debt.

1 point

Liquidity

Asset Turnover

Profitability

Debt

3.
Question 3
_____________________ ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings.

1 point

Liquidity

Asset Turnover

Profitability

Debt

4.
Question 4
_____________________ ratios are a class of financial metrics that is used to measure the turnover of assets.

1 point

Liquidity

Asset Turnover

Profitability

Debt Ratios

5.
Question 5
According to the DuPont Pyramid, operating efficiency is:

1 point

measured by profit margin

measured by total asset turnover

measured by the equity multiplier

6.
Question 6
According to the DuPont Pyramid, asset use efficiency is:

1 point

measured by profit margin

measured by total asset turnover

measured by the equity multiplier

7.
Question 7
According to the DuPont Pyramid, financial leverage is:

1 point

measured by profit margin

measured by total asset turnover

measured by the equity multiplier

8.
Question 8
The
Quick Ratio is known as the “acid test” of ratios because it’s a quick way of
finding out whether a company has enough assets to cover its liabilities.

1 point

True

False

9.
Question 9
The
Quick Ratio does not include a
company’s inventory because companies can’t always convert their inventory into
a liquid asset in order to pay their bills.

1 point

True

False

10.
Question 10
The earnings per share (EPS) ratio:

1 point

tells you how much the market is willing to pay
for each dollar of profit in a company

tells you how much a company is leveraged

indicates a company’s profitability

tells you the profit per sales dollar

11.
Question 11
The price earnings (P/E) ratio:

1 point

tells you how much the market is willing to pay for each dollar of profit in a company

tells you how much a company is leveraged

indicates a company’s projected profitability

tells you the profit per sales dollar

 

 

Module 4 Quiz

1.
Question 1
Which is the simplest form of company valuation?

1 point

Market Valuation

Multiples Method

Discounted Cash Flow (DCF) Analysis

Comparison Method

2.
Question 2
To use the Market Valuation method, you need the company’s stock price and the number of:

1 point

Employees

Outstanding Shares

Issued Shares

Dividends Paid

3.
Question 3
Using a set of common metrics to valuate a company based on other companies in the same sector is better known as:

1 point

Market Valuation

Multiples Method

Discounted Cash Flow (DCF) Analysis

Comparison Method

4.
Question 4
The Discounted Cash Flow method uses a company’s free cash flows and a discount rate to calculate the:

1 point

Internal Rate of Return (IRR)

Net Present Value (NPV)

Cost of Goods Sold (GOGS)

DuPont Pyramid

5.
Question 5
The _______________________ is the yield of an investment expressed as a percentage.

1 point

Internal Rate of Return (IRR)

Net Present Value (NPV)

Cost of Goods Sold (GOGS)

DuPont Pyramid

6.
Question 6
The IRR of a venture is the rate of return at which the NPV = 0.

1 point

True

False

7.
Question 7
Valuation answers the question “What is a company worth?”

1 point

True

False

8.
Question 8
Which of the three valuation methods discussed is driven by traders and can suffer from a “herd mentality”?

1 point

Market valuation

Multiples method

Discounted cash flow (DCF) analysis

9.
Question 9
Because the Multiples method of valuation compares companies that are in the same sector, you should choose 15 or 20 companies to examine.

1 point

True

False

10.
Question 10
The premise behind Net Present Value is:

1 point

Money today is worth more than money a year from now.

A company may shrink or expand in the future

What investors do today may not predict what they’ll do a year from now

Investors are fickle and may sell their stocks on a whim

 

 

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