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Worksheets

ACNT for Business Stability

Total questions: 23

Worksheet time: 31mins

Name
Class
Date
1.
Which of the following statements is true about Debt? 
a)
Debt is the amount of money you have in your checking account.
b)
Debt is the amount of money you have borrowed from a person or a business.
c)
Debt is the ability to borrow money.
d)
Debt is the amount of money you have in a savings account. 
2.

A decrease or loss in value.

a)

Credit Card

b)

Credit Report

c)

Credit Score

d)

Debt Snowball

e)

Depreciation

3.

This is the increase in value of a home over time or the difference between the amount owed and what the home could be sold for.

a)

Negative Equity

b)

Equity

c)

Interest

d)

Principal

4.

Depreciating Assets ...

a)

Lose value over time

b)

Increase in value over time

c)

are offered as security on a debt

d)

are legal claims (or right to own) against an asset until a debt is repaid

5.

Cash in Flow is

a)

Income

b)

total development cost

c)

capital outstanding

6.

Cash in Flow is

a)

Income

b)

total development cost

c)

capital outstanding

7.

Cash Outflow

a)

land cost

b)

development cost

c)

present value

8.

3 alternative method in cash flow

a)

Net Terminal Value

b)

Residual Method

c)

Discounted Cash Flow

d)

Period by Period

e)

Net Present Value

9.

Professional fees and marketing are among the items for...

a)

NPV

b)

Cash Inflow

c)

Developer profit

d)

Cash Outflow

10.

What form of investment income is the result of a company distributing some/all of its profits to shareholders?

a)

Capital Gain

b)

Dividend

c)

Interest

d)

Premium

11.

Using dividends previously earned on the stock to buy more shares

a)

Direct investment

b)

Dividend reinvestment

12.

What is the definition of 'profit'?

a)

The difference between the amount earned and the amount spent in buying.

b)

The difference in price between the highest and lowest product.

c)

The difference between the price of your product and your competitors.

13.
Which of the following statements best describe the IRR?
a)
The rate of return on the investment calculated based on cash inflows and outflows.
b)
The rate of return on the investment calculated based on investment capital and profit generate.
c)
The minimum rate of return required for the business to be profitable.
d)
The maximum rate of return that business could generate.
14.
Financial ratios that show how and to what degree a company has financed its assets.
a)
leverage ratios
b)
liquidity ratios
c)
efficiency ratios
d)
profitability ratios
15.
The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets. 
a)
current ratio
b)
working capital
c)
acid test/ quick ratio
d)
asset turnover ratio
16.
The amount of profit generated by the firm in relation to the amount invested by the owners.
a)
return on investment
b)
ratio
c)
working capital
d)
inventory turnover
17.

Why is the cash flow important?

a)

To know the available cash to pay

b)

To know if the business is being efficient with its cash

c)

To avoid insolvency

d)

All are correct

18.

Why is the cash flow forecast important?

a)

To know if the business is holding too much cash that could be used in a more profitable way.

b)

To know how much money ask the bank for.

c)

To help the manger to know the available cash to pay/purchase.

d)

All the above.

19.

_______ financial statements based on estimates of future business performance, sales, and expenses.

a)

Pro Forma Cash Statements

b)

Pro Forma Balance Sheet

c)

Pro Forma Income Statement

d)

Pro Forma Financial Statements.

20.

______ projects revenues and expenses to show whether or not a business is profitable.

a)

Pro Forma Cash Statements

b)

Pro Forma Balance Sheet

c)

Pro Forma Income Statement

d)

Pro Forma Financial Statement

21.

The explicit or implicit decision of the Board of Directors regarding the amount of residual earnings (past or present) that should be distributed to the shareholders of the corporation is called..

a)

Retained Earning

b)

Dividend Policy

c)

Bird in Hand

d)

Agency Theory

22.

Dividends can be in the form of..

a)

Cash, stock dividend, property

b)

Debt, account receivable, earnings

c)

retained earnings and stock split

d)

Financing, investment, operating

23.

If a firm is dissolved, at the end of the process, a final dividend of any residual amount is made to the shareholders . This is known as a...

a)

Declaration date

b)

Consolidation Dividend

c)

Bird in the hand argument

d)

Liquidating dividend