Finance for Non-finance Jasa Marga

Below is difference between Accounting and Finance:

• Accounting mostly uses managerial judgment and Finance follows standard principle (more rigid)

• Accounting is planning and Finance is booking

• Accounting is more forward looking and Finance is more historical

• Accounting is more historical and Finance is more forward looking

In general, items of asset in a balance sheet are listed based on:

• Size of the assets

• Liquidity of the assets

• Nominal of the assets

• Expiration date of the assets

A current asset is:

• the last asset purchased by a business

• an asset which is currently being used to produce a product or service

• usually found as a separate classification in the income statement

• an asset which is expected to be converted to cash or used in the business within one year or less

In regard to Operating Profit, which of following statements is correct:

• Operating Profit is profit after cost of revenues and overhead costs are deducted from revenues

• Operating Profit is profit after cost of revenues is deducted from revenues

• Operating Profit is the difference between revenues and overhead cost

• Operating profit is the difference between revenue and cost of good solds

In statement of Cash Flows, payment of outstanding debt is classified as:

• Operating activities

• Investing activities 

• Financing activities

• Marketing activities

Analizing growth of revenues for past five years is an example of:

• Vertical analysis

• Horizontal analysis

• Industry analysis

• Peer analysis

In vertical analysis, which item in Income Statement is the base amount:

• Overhead Expenses

• Gross Profit

• Operating Profit

• Sales Revenue

Current Ratio and Quick Ratio are categorized as:

• Liquidity Ratios

• Asset Management Ratios

• Debt Management Ratios

• Profitability Ratios

Asset Management Ratios are mainly used to:

• measure how efficient a company uses equities to finance its assets

• measure how efficient a company manage its debt relative to assets

• measure how well a company manage their asset to generate sales

• measure how well a company increases the value of its assets

Two determinant aspects (drivers) of Return on Asset (ROA) are:

• Cost Control and Inventory Management

• Cost Control and Asset Utilization

• Cost Control and Liquidity 

• None of above