WorksheetsFinance Series
Total questions: 50
Worksheet time: 51mins
Which of the following characteristic of a legally binding:
The contract must include an expiration date
One of the parties must be in agreement
The contract must be written and signed
Something of value must be exchanged
An important purpose of regulations in the finance industry is to
limit the amount of money individuals can earn
prevent the banking system
Challenge the integrity of the financial system
ensure companies are held accountable for product
What is an advantage of using technology in compliance?
Risk of increased fraud
Decreased cost
Ease of transitions
Increased efficiency
The purpose of customs duties is to
build relationships between countries
increase imports and exports.
protect a country's economy
develop globalization.
Which of the following examples would be considered illegal insider trading:
An employee who participates in an employee stock purchase plan buys stock in his company.
Ian buys stock in his wife's company after learning from her that the firm will post high earnings.
A government official owns stock in various public corporations.
Rita's financial advisor predicts that a certain stock will perform well.
Several months ago, Erin convinced Sebastian to invest in her new business that sells health supplements. Erin promised that Sebastian would receive a 10% return on his investment every month. Since investing in Erin's company, though, Sebastian hasn't earned any money on his investment. Instead, Erin seems to have used his investment to financially reward earlier investors. Which type of investment scheme does this example most likely describe?
Predatory lending
Annuities scam
Ponzi scheme
Prime bank scheme
Devon bought a property for $250,000 and sold it for $300,000. The money he made on the sale is
known as
estate tax.
sales revenue.
disposable income.
capital gains.
While giving a presentation on the benefits of online advertising, Raleigh shared his personal belief that a
major online advertising campaign could increase yearly sales by 40%. He also explained to his audience, however, that he hadn't done enough research to be sure of that estimation yet. After attending Raleigh's presentation, Tatiana told the CEO that a major online advertising campaign would definitely increase yearly sales by 40%. What mistake did Tatiana make by not actively listening to Raleigh?
She misunderstood the purpose of online advertising
She misinterpreted Raleigh's opinion as fact.
She failed to notice Raleigh's body language
She thought that Raleigh was in charge of online advertising.
Jori's health teacher asked him to create a presentation to convince others that vaccines are beneficial.
What type of presentation has Jori been asked to create?
Persuasive
Informative
Entertaining
Analytical
Many businesses use infographics to help persuade readers because
infographics raise the perception of quality
original artwork usually takes longer to create
most people are lazy and don't like to read
readers spend more time viewing infographics
Which of the following is an example of a business purposefully using social media to promote itself:
A forum where car owners post mechanical repair and upgrade advice
An automaker's website showing the company's newest vehicles
An opinion blog about the best features of newly designed vehicles
Tweets about the superior miles per gallon by new auto owners
Zian is one of several employees involved in a group effort to update the company's website. Zian shares
some detailed research about the visual appeal of competing websites, but Jalen says it doesn't matter because the goal of the meeting is to determine how the website will operate, not the image it will promote. Jalen is not being a supportive team member because he
focused on the specific goal of the meeting
failed to recognize the efforts of a team member.
refused to listen to good advice based on research.
created a personal conflict with a team member.
By developing a brand promise, a company can
communicate its commitment to meeting customers' expectations.
ensure that all of its products will meet customers' expectations.
obtain a trademark from the government.
establish a licensing agreement with the government.
Which of the following is a true statement about customer trust:
Customers will trust a business unless they have a reason not to.
Customer trust can be built quickly.
Customer trust can be broken quickly.
Customers usually give businesses second chances after breaking their trust.
If a financial planner fails to stay informed about new laws impacting the financial products he sells,
which of the following ethical principles is he failing to observe:
Honesty
Confidentiality
Competence
Objectivity
Which of the following capabilities of customer relationship management (CRM) systems help companies
develop new products to meet customers' needs:
CRM systems store customers' names and addresses.
CRM systems store customers' purchasing history
CRM systems send promotional materials.
CRM systems send email messages.
When a company analyzes data from a customer relationship management system to discover patterns
of behavior, what technique is it using?
Data mining
Social networking
Data collection
Customer service
Which of the following examples illustrates the value of productivity:
A popular toy goes up in price during the holiday season.
A steak costs more than a fast-food burger.
A rare coin is sold for thousands of dollars.
Restaurant servers earn higher tips for fast service.
When an economy is struggling, consumers are less likely to make discretionary purchases. Which of the
following is an example of a discretionary item:
Food
Vacation
Clothing
Medical care
What is an example of government regulation in a market economy?
Government-mandated production quotas
State-owned businesses
The legal system
There is no government regulation in a market economy.
Although a business has fixed inputs available for production, it decides to add more workers.
Diminishing returns are likely to occur due to
lower production costs.
higher production costs.
marginal product increases.
lower supply prices.
If GDP is rising, businesses are more likely to
buy fewer raw materials
hire new workers
use short-term sales forecasting
restrict the amount of money in circulation.
When doing business in another country, which of the following strategies should you use to ensure that
you do not offend anyone:
Refrain from adapting your products.
Use a strong, aggressive approach.
Maintain casual, friendly conversation.
Be well-organized and prepared.
Why is emotional intelligence more difficult to measure than cognitive ability?
Emotional intelligence involves responses to situations
Not everyone possesses emotional intelligence
The standards for measuring emotional intelligence are higher
People don't use emotional intelligence as often as cognitive ability.
When a person fails to take responsibility for decisions and actions, s/he will likely experience difficulty
choosing a college.
understanding math homework.
creating goals.
getting along with others.
Which of the following actions can help a person develop empathy
Avoiding criticism
Eliminating sympathy
Forming strong opinions
Eliminating stereotypes
Which of the following is a true statement about effective communication:
Effective communication is a two-way process.
It is up to the sender to facilitate effective communication.
There are very few barriers to effective communication.
People rarely make mistakes when communicating.
Which of the following team activities often leads to enhanced personal learning:
Developing deeper investment in the project
Matching your teammates' effort
Researching new information
Managing disagreements among your teammates
Ian is struggling to find meaning in his daily life as a student. He lacks the motivation to work hard at
school because he is unclear about his post-graduation plans. What could Ian do to help him clarify his purpose in school and life?
Ask his friends what he should do
Set specific goals for himself
Determine his personal vision
Reflect on his past mistakes
Lauren wants to get credit through a financial institution that is owned by its members. Which source of
credit is she most likely to use?
A sales finance company
A commercial bank
A savings and loan association
A credit union
Which of the following is a long-term life goal that people often save money for:
Using an emergency fund
Buying a home
Budgeting for daily expenses
Paying utility bills
What is the main reason for treating saving money in a bank account like a fixed expense in a personal
budget?
To pay for financial emergencies
So that you save money regularly
So that money can earn more interest
To pay expenses and bills on time
Which of the following is a non-depository financial institution:
Bank with FDIC insurance
Local savings and loan
Insurance company
Credit union
Which of the following financial markets is seen as relatively risk-free due to the highly liquid nature of its
securities:
Money market
Stock market
Bond market
Commodities market
A commodities market is a marketplace for buying and selling
shares of companies.
financial securities.
raw or primary products.
government bonds.
Which of the following is an accurate statement of how financial information for a parent company and its
subsidiaries is represented on consolidated financial statements:
Transactions between the parent and subsidiaries are included for accurate representation.
All assets, liabilities, revenue, and expenses are combined for the parent and its subsidiaries.
Separate allocations for the parent and each subsidiary are listed for individual assessment
All financial components are combined except for individual profits and losses of each entity.
Which of the following is a distinguishing feature of a consolidation in the finance industry:
All entities continue operating, connected by a parent-subsidiary relationship.
All former entities no longer exist, and a single new legal entity is formed.
One of the entities continues to exist, absorbing 100% of another entity's stock.
The acquirer does not have to purchase 100% of the target company's equity.
How can the stock market affect the economy?
Declines in stock markets decrease consumer confidence
Interest rates are lower when the economy is in recession
The stock market performs better during long-term stagnation.
Rising stock markets cause consumer prices to decrease.
Which of the following is a result of financial globalization:
Decreased connectivity among countries across the globe
Economic and social development of previously undeveloped nations
Economic and social decline of previously developed nations
Less overall financial competition among nations
An investor can most accurately determine a company's current financial health by
analyzing the company's last three annual reports
checking its stock price in The Wall Street Journal
reading reviews from a leading brokerage firm.
looking at the company's Standard & Poor's rating.
The net change reported in a stock table represents the difference between the price paid for the last
share today and the price paid for the
first share from last year.
last share from last year.
first share on the previous day.
last share on the previous day.
The first step in the accounting cycle is
posting to ledgers
preparing financial statements
analyzing financial transactions
journalizing financial transactions.
A cash flow statement helps businesses plan their bill payments by
estimating how much cash the business started with.
estimating when cash payments will be received.
recording all outstanding accounts to be collected.
listing ways to acquire more customers and sales.
When dividends are paid to stockholders, how are they represented on a statement of stockholders'
equity?
They are listed as a percentage of the net income
They are added to the net income
They are subtracted from the net income
They are simply listed on the statement.
Which of the following are typically the two major sections of a statement of stockholders' equity:
Capital stock and retained earnings
Net income and retained earnings
Distributed dividends and capital stock
Ending balance and capital stock
Isaac needs to trim the budget. Which of the following costs should he consider cutting:
Fixed cost
Variable cost
Sunk cost
Differential cost
A manufacturing company is considering whether or not to expand its product line but needs to know that
the extra costs associated with the decision will not exceed the budget. What technique can help answer this question?
Marginal analysis
Cost-benefit analysis
Variance analysis
Horizontal analysis
Evan is a managerial accountant. His manager is deciding whether or not to expand the sales team.
Evan can best help his manager with this decision by
determining how much new hires would impact the budget.
providing feedback on job candidates after their interviews
summarizing overall financial performance
examining the profitability of various products.
What is a good source of information for a managerial accountant whose company needs to determine
how much money is available for a marketing campaign?
Sales forecast
Budget
Variance analysis
Cost-benefit analysis
Which of the following is a technique that can best help managerial accountants evaluate how well they
have budgeted:
Cost-benefit analysis
Variance analysis
Competitive analysis
