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WorksheetsASK Practice-Financial Analysis
Total questions: 25
Worksheet time: 2hrs 5mins
When using a debit card to pay for goods and services, the funds are electronically transferred from a(n)
interest or savings account
expense or interest account
savings or checking account
checking or credit account
The yen, peso, and euro are types of
money
bonds
stocks
dollars
What function of money enables a person to save his/her wealth until it is needed?
incentive
unit of measure
store of value
medium of exchange
Which of the following is a source of unearned income:
commissions
fees
wages
dividends
Jorge is considering whether to invest $100 at his bank, but first, he wants know what his $100 will be worth in a year. To figure this out, Jorge needs to know the
present value
time value of money
investment rate
interest rate
Franklin received his monthly statement from Friendship General Store. Franklin realized that the company had made a mistake and charged him twice for as set of speakers. He notified the company of this error and requested an investigation. A representative from Friendship informed Franklin that the company would look into this matter and provide a written explanation or correct the error within 90 days. The federal credit legislation that Friendship is complying with is known as the
Fair Credit Reporting Act
Equal Credit Opportunity Act
Fair Credit Billing Act
Truth-In Lending Act
When the US federal government owes money to a contracted employee or business, the government must pay the employee or business according to the
Secure Contracting Act
Prompt Payment Act
Government Guidelines Act
Early Bird Act
One of the main reasons why individuals make investments based on their future financial needs is to
generate retirement income
avoid paying taxes
develop a living will
set up a trust fund
Emily has decided to use all of her savings to buy a new car instead of a used one. What are the opportunity costs of that decision?
The money she saves by not having to constantly repair a used car
The benefits she could have received by using public transportation instead
The reliability and luxury of a new car compared to a used one
The benefits she could have received by using the additional cost of a new car another way
Which of the following are examples of expenses that should be considered when developing a personal budget:
Rent, entertainment and insurance
Insurance, dividends and utilities
Food, utilities and salary
Entertainment, wages and utilities
What type of services do property taxes typically fund?
Local fire departments and local law-enforcement agencies
State/Provincial education programs and federal correctional facilities
State/Provincial colleges and state/provincial social welfare intiatives
National security programs and local road repairs
Ingrid is preparing a deposit ticket for her small business's checking account. She has six checks in the following amounts: $42.36, $21.94, $118.28, $77.93, #17.29, and $56.47. Ingrid also has cash and coin in the following amounts: 46 $1 bills, 13 $5 bills, 11 $10 bills, 15 $20 bills, 88 dimes, and 64 quarters. Calculate Ingrid's total deposit.
$880.07
$890.47
$897.07
$887.47
In what primary way does a T account benefit an accountant in maintaining financial records?
Increases the accuracy of calcuations
Heightens the awareness of spending problems
Reveals the motives behind a purchase
Shows the parts of a business transaction
Because Elise paid her monthly credit-card bill on April 16 instead of April 4, the credit card issuer added a $25 charge to her May billing statement. This is an example of a(n)__________________fee.
cash-advance
late
annual
balance-transfer
The primary reason that people review their personal credit reports is to
verify that the credit agencies have correct information
ensure that they obtain bank loans
change or update their credit rating
eliminate the risk of identity theft
State Street Bank sends text messages to its customers when $100 or more are withdrawn from their bank accounts. The bank sends these notifications to reduce the risks associated with
firewall intrusion
money laundering
identity theft
loan fraud
Lin ears $35,000 of taxable income a year. She's unmarried, has no dependents, and doesn't earn any money from interest. Which tax form should she file?
1040
Lin doesn't need to file taxes because of her income level
1040A
1040EZ
Amira is trying to choose a financial institution. She likes to do her banking in person, and she wants to make sure she selects an institution that's customer friendly. She wants good interest rates and low fees, and she'd also prefer to invest with a not-for profit institution. Amira should invest her money into a(n)
investment bank
credit union
internet bank
commercial bank
Adam wants to hire a financial-services provider who will provide him a wide variety of services, such as recommending insurance coverage, providing in-depth financial advice, and making investments on his behalf. What type of financial-services provider who be best suited to handle Adam's needs?
full-service banker
insurance agent
discount broker
beneficiary
What is a benefit of investing in mutual funds?
Investors earn interest because it is a lending investment
Investors have access to a fund manager's expertise
Investors' fees are waived because it is an ownership investment
Investors are guaranteed a minimal amount of return
When a business's insurance premiums are high, it is most often because the
security is optional
liability is low
risk is high
threats are minimal
During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and systems. As a result, the company's financial information is likely to be very
reliable
conservative
comparable
consistent
Which of the following would a business use in order to know how much money is available to hire more staff:
Accounting information
income statement
journal
profit and loss statement
Accounting standards are necessary in business because
Important decisions rely on accounting information
math scores have dropped in recent years
auditors need a way to evaluate businesses
the government wants to know what businesses are doing
Which of the following is a capital investment decision:
How to finance investments
how to manage inventory
how to handle accounts payable
how to manage cash flow
