Key Financial Concepts Quiz

What are assets?

• Something of value

• Money earned when something is sold

• An obligation you have to pay someone else money

• Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding

___ are cash, publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash

Collateral can be defined as

• The right to take possession of collateral until a debt is repaid

• Money earned when something is sold

• Equipment, inventory or other goods that are pledged to the bank in the case the company can’t make a loan payment.

• The money a person borrows to buy real estate.

A person who is considered credit-worthy needs a credit score ranging between 700 and 800.

• True

• False

A dividend is money paid by a company to a person who owns stock in that company. When are they paid?

• Quarterly

• Annually

• Either quarterly or annually.

• None of the above

A liability can be considered a debt or

If you can't repay a bank loan, the bank has the right to take possession of your inventory and sell it to pay themselves the money you owe them. This means that the bank has a what?

• Commissions

• Obligation

• Lien

• Notes Payable

Maturity refers to

• The date a loan (or debt or liability) is repaid in full

• An investment worth money

• Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding

• An obligation you have to pay someone else money

Shares are

• The money a person borrows to buy real estate

• One of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits

• Assets that are not already pledged as a guarantee to repay another loan

• None of the above

A shareholder is an individual who creates a business.

• True

• False