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BRAC 06-02 Key Financial Concepts

Total questions: 80

Worksheet time: 40mins

Name
Class
Date
1.

What is an asset?

a)

Cash, publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash.

b)

Something of value

c)

Money earned when something is sold

d)

The hard work a small business owner puts into forming, founding and operating his/her business

2.

What is a cash instrument?

a)

An investment worth money

b)

An obligation you have to pay someone else money.

c)

Cash, publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash.

d)

like a saxophone

3.

Collateral

a)

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

b)

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

c)

Money paid by a company to a person who owns stock in that company.

d)

Fixed costs plus variable costs

4.

What is the definition of commissions?

a)

Money earned when something is sold.

b)

An option a supplier might grant a company to pay their bills later than they normally would.

c)

When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank.

d)

the snacks you get at a football game

5.

Credit-Worthy

a)

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

b)

The money a person borrows to buy real estate

c)

A person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

6.

Dividend?

a)

Money paid by a company to a person who owns stock in that company.

b)

An individual or company that owns shares in a company.

c)

The money a person borrows to buy real estate

d)

The percentage of a loan a bank or online credit company charges when a small business receives a loan

7.

What is a Liability?

a)

Money owed by a company to a supplier.

b)

The money a person borrows to buy real estate

c)

An obligation you have to pay someone else money.

d)

Real estate is property and the building(s) on it.

8.

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

a)

Collateral

b)

Share

c)

Lien

d)

Security

9.

What is a liquid asset?

a)

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

b)

Money owed by a customer to a company

c)

Debt from a bank.

d)

a type of cold drink

10.

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

a)

Maturity

b)

Mortgage

c)

Lien

d)

Quarter

11.

Which of the following would you buy with a mortgage?

a)

car

b)

real estate

c)

jewelry

d)

a coke and hot fries

12.

Net Income?

a)

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

b)

Money owed by a customer to a company

c)

revenues after costs

d)

a basketball team

13.

Types of debt other than a mortgage are known as..

a)

Notes payable

b)

Liabilities

c)

Mortgage

d)

Collateral

14.

Which of the following best defines the word securities?

a)

One of the equal parts into which a company’s capital is divided

b)

An investment worth money

c)

A loan

d)

the police officers at school

15.

Share

a)

stock in companies

b)

One of the equal parts into which a company’s capital is divided

c)

Bonds

d)

when you give someone half of what you have

16.

What is a shareholder?

a)

Profit

b)

A company that provides individuals and companies with access to financial markets.

c)

An individual or company that owns shares in a company.

d)

A legal agreement that an assets is part of a guarantee to a lender

17.

What is the meaning of the word unencumbered?

a)

Costs that make up one unit of what you sell

b)

A company that provides individuals and companies with access to financial markets.

c)

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

d)

a type of vegetable

18.

Money owed by a company to a supplier.

a)

Account Payable

b)

Account Receivable

c)

Cash Flow

d)

Debt

19.

Account Receivable

a)

Money owed from a company to a supplier

b)

Money owed on a bond.

c)

Money owed by a customer to a company.

d)

property and the building(s) on it

20.

What is an Angel Investor?

a)

An investor that loans money with expectations of getting their money back in full.

b)

An investor who loans money without expectations of getting paid back.

c)

A company that invests expecting to get their money back with interest.

d)

that guy from the bible

21.

Bank Loan

a)

Debt from a bank.

b)

Mortgage

c)

Angel Investors

d)

Lein

22.

What is a bond?

a)

A mortgage

b)

A stock

c)

A loan

d)

a musical group

23.

Breakeven Analysis

a)

Unit price minus cost of goods sold.

b)

Costs that make up one unit of what you sell.

c)

A determination of how many units are needed to sell in order to pay for all fixed costs.

d)

that one song by The Script

24.

Brokerage

a)

Expenditures on equipment the business will use for many years.

b)

A company that provides individuals and companies with access to financial markets.

c)

unit price minus cost of goods sold.

d)

A legal agreement that an assets is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payment

25.

Capital

a)

Expenditures on equipment the business will use for many years.

b)

Costs that make up one unit of what you sell.

c)

Funds contributed by investors to a business.

d)

the city where government matters take place

26.

Capital Expenditures

a)

A company that provides individuals and companies with access to financial markets.

b)

Expenditures on equipment the business will use for many years.

c)

Costs that makeup one unit of what you sell

d)

A Latin phrase (

27.

Total Revenues minus Total Cost minus one-time expenditures

a)

Cash Flow

b)

Capital

c)

Breakeven

d)

Lein

28.

Contribution Margin

a)

A company that provides individuals and companies with access to financial markets.

b)

Unit price minus cost of goods sold.

c)

Costs that make up one unit of what you sell. These can be labor costs as well as material costs

d)

fake butter

29.

Cost of goods sold

a)

Costs that make up one unit of what you sell. These can be labor costs as well as material costs.

b)

Funds contributed by investors to a business

c)

Costs that make up one unit of what you sell.

d)

three months

30.

Covered loss

a)

The 12 month period a company uses to report financial result

b)

A loss that an insurance company will reimburse a policyholder for in the event of a claim.

c)

Costs that do not vary based on the units sold by enterprise

d)

a breed of dog

31.

Credit

a)

Distinguishing a product or service "different than anything else,"

b)

Costs that do not vary based on the units sold by enterprise

c)

An option a supplier might grant a company to pay their bills later than they normally would

d)

full points on an assignment

32.

Crowdfunding

a)

Crowdfunding is an Internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment

b)

The amount that an insurance company makes a policyholder pay as part of any claim.

c)

The 12 month period a company uses to report financial results

d)

that thing they do at rock shows

33.

Deductible

a)

Funds contributed by investors to a business

b)

Costs that do not vary based on the units sold by enterprise

c)

The amount that an insurance company makes a policyholder pay as part of any claim

d)

the duck from the insurance ads

34.

Default

a)

A credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder can’t make required payment.

b)

Failure to repay a loan

c)

A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire.

d)

the settings on your phone before you change things

35.

Differentiating Offering

a)

Distinguishing a product or service "different than anything else,"

b)

The individual or business that purchases an insurance policy for various types of protection

c)

A loan that provides the borrower a maximum amount of money he/she can borrower - the borrower can then access or use that line of credit for only as much money as they need at any particular time

d)

Debt owed to someone that is paid in monthly payments

36.

Differentiation

a)

Costs that do not vary based on the units sold by enterprise.

b)

The act of making a business different

c)

A credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder can’t make required payment.

d)

A legal decision requiring a person or company to pay another person or company.

37.

Equity

a)

Funds contributed by investors to a business.

b)

An option a supplier might grant a company to pay their bills later than they normally would.

c)

A credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder can’t make required payment.

d)

line of credit

38.

Extended Payment Terms

a)

An option a supplier might grant a company to pay their bills later than they normally would.

b)

Costs that do not vary based on the units sold by enterprise

c)

The 12 month period a company uses to report financial results

d)

The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss

39.

What is a Fiscal Year?

a)

The 12 month period a company uses to report financial results

b)

Costs that do not vary based on the units sold by enterprise

c)

An option a supplier might grant a company to pay their bills later than they normally would.

d)

when an extra day is added to the month February

40.

Fixed Cost

a)

Cost of goods sold

b)

Rent

c)

A new piece of equipment.

d)

A legal decision requiring a person or company to pay another person or company

41.

Guarantor

a)

A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire

b)

A legal decision requiring a person or company to pay another person or company

c)

A credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder can’t make required payment.

d)

An investment security that includes many different stocks purchased and held together

42.

IRA

a)

A loan that provides the borrower a maximum amount of money he/she can borrower -

b)

A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire

c)

The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.

d)

a grandmothers name

43.

Installment Payment

a)

A payment that is owed every month.

b)

Debt owed to someone that is paid in monthly payments

c)

An investment security that includes many different stocks purchased and held together.

d)

a down payment on something

44.

Insurance Claim

a)

A payment that is owed every month.

b)

The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.

c)

A loan that provides the borrower a maximum amount of money he/she can borrower

d)

Money earned when something is sold.

45.

Insurance policy holder

a)

Debt obtained from a number of online companies

b)

An investment security that includes many different stocks purchased and held together.

c)

The individual or business that purchases an insurance policy for various types of protection

d)

The money a person borrows to buy real estate

46.

Insurance Premium

a)

The amount a policyholder (either every quarter or year) pays for an insurance policy

b)

Ratios a lending company calculates about an individual or a company to determine how likely they are to have the liquidity to repay debt payments that are required in a loan.

c)

An investment security that includes many different stocks purchased and held together

d)

the highest version of insurance

47.

Inventory

a)

The money a company has

b)

The cost of goods sold

c)

The merchandise that a company sells to its customers.

d)

when you make something new

48.

Judgement

a)

a investors opinion on your business

b)

a guilty verdict

c)

A legal decision requiring a person or company to pay another person or company

d)

when you hate what someones wearing

49.

A loan that provides the borrower a maximum amount of money he/she can borrower

a)

Line of credit

b)

Mutual Fund

c)

Obligation

d)

Lein

50.

Liquidity Ratio

a)

An investment security that includes many different stocks purchased and held together.

b)

Ratios a lending company calculates about an individual or a company to determine how likely they are to have the liquidity to repay debt payments that are required in a loan.

c)

A payment that is owed every month. Example: your mortgage is a monthly obligation. (

d)

how much milk is is your cereal

51.

Mutual Fund

a)

The amount a policyholder (either every quarter or year) pays for an insurance policy.

b)

An investment security that includes many different stocks purchased and held together.

c)

A payment that is owed every month. Example: your mortgage is a monthly obligation

d)

ownership of a company

52.

Obligation

a)

Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks.

b)

A legal decision requiring a person or company to pay another person or company.

c)

A payment that is owed every month. Example: your mortgage is a monthly obligation.

d)

the little paper they give out at funerals

53.

Online Credit

a)

Debt obtained from a number of companies

b)

The percentage of a loan a bank or online credit company charges when a small business receives a loan.

c)

a projection of future financial performance.

d)

property and the building(s) on it

54.

Origination Fee

a)

A legal agreement that an assets is part of a guarantee to a lender

b)

The percentage of a loan a bank or online credit company charges when a small business receives a loan.

c)

How a business moves a specific customer to buy their service or offering

d)

the time in which a loan is completely payed off

55.

Overdraft

a)

Unit price minus cost of goods sold

b)

a projection of future financial performance

c)

How a business moves a specific customer to buy their service or offering

d)

When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank

56.

overhead

a)

Costs that vary somewhat based on the number of units you sell

b)

A company that provides a good or service to another company.

c)

a projection of future financial performance

d)

Costs that a business incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently

57.

Own Free and Clear

a)

Owning an asset without any associated debt.

b)

A legal agreement that an assets is part of a guarantee to a lender

c)

How a business moves a specific customer to buy their service or offering.

d)

Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment

58.

Pledged

a)

the oven cleaner

b)

How a business moves a specific customer to buy their service or offering.

c)

A legal agreement that an assets is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payment.

d)

An investment vehicle

59.

Principal

a)

projections for the upcoming quarter

b)

like mrs qualey

c)

unit price-goods sold

d)

the amount of money borrowed

60.

pro forma

a)

a google docs font

b)

Real estate is property and the building(s) on it

c)

a projection of future financial performance

d)

Costs that vary somewhat based on the number of units you sell.

61.

profit

a)

an investments

b)

revenue minus costs, the money you make

c)

jesus

d)

Shares of ownership in a company

62.

profit per unit

a)

Shares of ownership in a company

b)

Costs that vary somewhat based on the number of units you sell.

c)

Unit price minus cost of goods sold.

d)

a ben n jerrys flavor

63.

quarter

a)

a u.s. currency

b)

a three month period

c)

How a business moves a specific customer to buy their service or offering

d)

All people or companies associated with an enterprise.

64.

real estate

a)

How a business moves a specific customer to buy their service or offering.

b)

A company that provides a good or service to another company

c)

someone who likes to save money

d)

land and the buildings on it

65.

satisfy a loan

a)

invest in stocks

b)

completely repay the loan

c)

sell a loan

d)

feed it a cookie

66.

secured debt

a)

property and the building(s) on it.

b)

the new taylor swift song title

c)

Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment

d)

Fixed costs plus variable costs.

67.

security

a)

a loan that is not yet repaid

b)

All people or companies associated with an enterprise

c)

stocks, bonds and mutual funds.

d)

the police officers that arrest unruly customers

68.

Selling

a)

the underside of a roof

b)

The hard work a small business owner puts into forming, founding and operating his/her business

c)

Shares of ownership in a company.

d)

How a business moves a specific customer to buy their service or offering.

69.

Semi-Variable Cost

a)

a type of 18 wheeler

b)

Costs that vary somewhat based on the number of units you sell

c)

The exact customers and market sector the business intends to serve

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

70.

stakeholders

a)

The hard work a small business owner puts into forming, founding and operating his/her business

b)

Shares of ownership in a company

c)

the waitresses as texas roadhouse

d)

All people or companies associated with an enterprise.

71.

stocks

a)

the stuff you put in gumbo

b)

Shares of ownership in a company.

c)

Units refer to the “things” the company sells

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment

72.

supplier

a)

Units refer to the “things” the company sells

b)

A company that provides a good or service to another company.

c)

Fixed costs plus variable costs

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment

73.

sweat equity

a)

how much you sweat during exercise

b)

The hard work a small business owner puts into forming, founding and operating his/her business –

c)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment

d)

Costs that vary based on the units sold by your enterprise.

74.

target market

a)

refer to the “things” the company sells.

b)

where my mom gets groceries

c)

The exact customers and market sector the business intends to serve

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

75.

total costs

a)

Units times price.

b)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

c)

Companies that conduct business with a company

d)

Fixed costs plus variable costs

76.

total revenue

a)

Shares of ownership in a company. Stock is a general term of ownership in any company

b)

Units times price

c)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment

d)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

77.

trade references

a)

Companies that conduct business with a company, and that can document how well a company pays its bills to its suppliers.

b)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.

c)

Costs that vary somewhat based on the number of units you sell.

d)

Fixed costs plus variable costs

78.

units

a)

your branding

b)

your audience

c)

the “things” the company sells

d)

those little blocks they give you in math class

79.

unsecured debt

a)

Costs that vary somewhat based on the number of units you sell

b)

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment

c)

Companies that conduct business with a company, and that can document how well a company pays its bills to its suppliers.

d)

Costs that vary based on the units sold by your enterprise.

80.

variable cost

a)

Costs that vary based on the units sold by your enterprise.

b)

Fixed costs plus variable costs.

c)

Units refer to the “things” the company sells.

d)

A company that provides a good or service to another company