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Finance JIM(2020-2022)

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.
What the Finance Department not do?
a)
Forecasting cash flow.
b)
Producing accounting information for managers.
c)
Hold Annual General Meetings.
d)
Take important decisions of finance.
2.
Finance departments record all transactions such as what?
a)
Payments and revenue.
b)
Transport and Infrastructure.
3.
What is start up capital?
a)
Finance needed before starting trading.
b)
Finance paid after trading.
c)
Finance paid to banks.
4.
Profit is important to businesses because:
a)
it improves businesses, cash balances
b)
it can be used to measure business size
c)
it is a measure of businesses, success
d)
businesses need to pay taxes to the government
5.
Working capital is sometimes called as...
a)
life of money
b)
life of blood
c)
life of soul
d)
life of human
6.
An example of working capital is...
a)
pay electricity bills.
b)
pay machinery.
c)
pay rent cost.
d)
pay insurance.
7.
What is capital expenditure?
a)
Money spent for fixed assets which last about 6 months.
b)
Money spent for fixed assets which last about for more than a year.
c)
Money spent on a day-to-day basis.
d)
Money spent per hour rate.
8.
What is asset?
a)
An item of property owned by a person or company
b)
An item owned by a business that lasts for several years.
9.
What is capital expenditure?
a)
Money spent on variable assets lasting 1 year
b)
Money spent on fixed assets lasting 1 year
c)
Money spent on variable assets lasting 10 years
d)
Money spent on fixed assets lasting 10 years
10.
What is revenue expenditure?
a)
Money spent on monthly expenses
b)
Money spent on hour to hour expenses
c)
Money spent on day to day expenses
d)
None of the above
11.
What is NOT a source of Internal finance?
a)
Retained profit
b)
Sale of existing assets
c)
Issue of shares
d)
All are sources of Internal finance
12.

A person who is not necessarily the owner of the business but has a stake on how the business is performing is called __________.

a)

stakeholder

b)

stockholder

c)

partners

d)

manager

13.

They are considered owners of the business and have voting rights, entitled to dividends which depend on their share and earnings of the corporation. They are called _________.

a)

stockholder

b)

stakeholder

c)

employees

d)

investors

14.

One of the internal stakeholders wherein the financial reports are necessary for them for decision making purposes. They are called ________.

a)

Top Management

b)

Department managers

c)

Board of directors

d)

employees

15.

It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called _______.

a)

investment banks

b)

commercial banks

c)

credit unions

d)

insurance companies