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Business and Finance Long Test

Total questions: 40

Worksheet time: 23mins

Name
Class
Date
1.

It is both science and art of correct application of the economic and accounting concepts and principles that define the system, structure and process of management, allocation, and utilization of financial resources, inventories, and expenditures.

a)

accountancy

b)

finance

c)

marketing

d)

management

2.

The use of factual information in financial decisions and activities emphasizes that finance is a _______.

a)

banking

b)

tool

c)

science

d)

system

3.

It is considered as the language of both business and finance.

a)

marketing

b)

financing

c)

accounting

d)

saving

4.

He stated that "Financial Management is that activity of management which is concerned with the planning, procuring, and controlling of the firm's financial resources.

a)

James Van Home

b)

Joseph Massie

c)

Deepika and Maya Rani

d)

Kuldeep Roy

5.

The following are the objectives of Financial Management except:

a)

profit maximization

b)

wealth maximization

c)

company's survival

d)

financial management

6.

The finance manager should not only to plan, procure, and utilize the funds but he also has to exercise _______ over the finances.

a)

invest

b)

control

c)

manage

d)

audit

7.

Which management technique should not be included in implementing financial controls.

a)

ratio analysis

b)

saving's interest

c)

financial forecasting

d)

cost and profit control

8.

______ is one of the prime functions of any business organization.

a)

Profit Earning

b)

Capital Structure

c)

Investing

d)

Profit Sharing

9.

It is on the discretion of a financial _______ on to how to distribute the profits.

a)

manager

b)

analyst

c)

consultant

d)

provider

10.

A financial manager understands and calculates the ____ involved in trading of shares and debentures.

a)

profit

b)

risk

c)

revenue

d)

transactions

11.

Finance is the discipline which is mainly based on the cash basis of operations while accounting is totally governed by the _______ system.

a)

capital

b)

accrual

c)

profit sharing

d)

raising of funds

12.

Well-functioning financial markets facilitate the flow of capital from investors to the users of ____.

a)

capital

b)

bonds

c)

markets

d)

money

13.

Markets provide users of capital with the necessary funds to finance their investment _______.

a)

costs

b)

projects

c)

shares

d)

income.

14.

A venue where goods and services are exchanged is called _________.

a)

factory

b)

market

c)

mall

d)

company

15.

It refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs

a)

Capital Market

b)

Money Market

c)

Securities Market

d)

Primary Market

16.

It refers to the markets for those financial instruments/claims/obligations that are commonly and readily transferable by sale.

a)

Money Market

b)

Capital Market

c)

Securities Market

d)

Primary Market

17.

A framework for describing set of markets, organizations, and individuals that engage in the transaction of financial instruments as well as regulatory institutions.

a)

Financial Market

b)

Financial System

c)

Financial Intermediaries

d)

Finance

18.

It is often described as the "snapshot" of the company's financial condition.

a)

balance sheet

b)

assets

c)

equity

d)

liabilities

19.

Accounting is mainly vested with the collection and presentation of data while _______ is closely connected with the decision making of the organization.

a)

statistics

b)

financial system

c)

finance

d)

securities

20.

They are markets in which longer term debt and equity instruments are traded.

a)

Capital Markets

b)

Money Markets

c)

Primary Markets

d)

Secondary Markets

21.

They are privately issued equity instruments which have a maturity of infinity by definition and thus, are classified as capital market instruments.

a)

Corporate bonds

b)

Corporate Stocks

c)

Commercial Papers

d)

Financial Market

22.

______ is an agent who matched buyers with sellers for a desired transaction.

a)

manager

b)

broker

c)

trader

d)

dealer

23.

Arrange the financial plans in order.

1. Gather data.

2. Develop a plan.

3. Establish a goal.

4. Implement the plan.

5. Analyze and establish your financial status

6. Monitor the plan and make necessary adjustments.

a)

3,2,1,4,6,5

b)

4,5,6,1,2,3

c)

3,1,5,2,4,6

d)

3,2,5,4,1,6

24.

_____ are formal quantitative statements of the resources set aside for carrying out planned activities over a given period of time.

a)

Budgets

b)

Capital

c)

Assets

d)

Liabilities

25.

The plan that sets the standard against which the performance can be measured

a)

Budget and Review

b)

Budget Preparation

c)

Budget Execution

d)

Budget Accountability

26.

Meant to measure marketing and sales effectiveness.

a)

expense

b)

revenue

c)

budget

d)

finance

27.

Planning and _______ is an analytical application that helps you set up down targets and generate a bottom up budget which is the foundation of organization's opertions.

a)

costing

b)

budgeting

c)

implementing

d)

auditing

28.

_______ identifies a desired output while budgeting identifies inputs to achieve that output.

a)

Costing

b)

Planning

c)

Managing

d)

Financing

29.

This phase includes the release and actual disbursement of funds for the identified functions, work and financial plan and request for allotment.

a)

Budget Preparation

b)

Budget Execution

c)

Budget Monitoring

d)

Budget Allocation

30.

The following are the issues and challenges in the budget except:

a)

Failure to submit supporting documents on time.

b)

Delayed submission of financial statement to the local finance committee.

c)

Early submission of work and financial plan and request for allotment by the department head.

d)

Conflict between the executive and legislation branches of the local government

31.

It is the possibility of losing the big amount of money in relation to investing.

a)

negative profit

b)

liabilities

c)

risk

d)

mismanagement

32.

It is an asset purchased with the hope that it will generate income or will be appreciated in the future.

a)

item

b)

investment

c)

money

d)

stocks

33.

It is a resource that would put money in your pockets.

a)

equity

b)

assets

c)

investment

d)

savings

34.

A sum of money saved or made available for a particular purpose.

a)

funds

b)

loans

c)

savings

d)

interests

35.

It is the increase of the cost of goods that affects our economy.

a)

revenue

b)

inflation

c)

foreign exchange

d)

production

36.

They are funds granted for a year or less.

a)

long-term

b)

short-term

c)

advance from stockholders

d)

supplier's credit

37.

A financial institution that can lend money as much as five times of your shared capital.

a)

bank

b)

pawnshop

c)

cooperative

d)

credit card

38.

Provides cashless transactions and even cash advances.

a)

cooperatives

b)

bank

c)

credit card

d)

pawnshop

39.

It releases money in exchange of your gadget or jewelry or other valuable items.

a)

Bond market

b)

bank

c)

pawnshop

d)

cooperative

40.

It refers to the willingness of the borrower to pay the loan.

a)

character

b)

capacity

c)

capital

d)

collateral