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Chapter 17 & 18 Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Chapter 20: What is included in M-3?

a)

Coins, paper money, traveler’s checks

b)

Savings accounts, mutual funds

c)

Institutional money market funds

d)

All of the above

2.

Who counts as a stakeholder of a company?

a)

Investors and creditors only

b)

Employees

c)

the government

d)

All individuals or groups who have a vested interest in the performance of the business.

3.

True or False: The Fundamental accounting equation doesn't always have to be balanced.

a)

True

b)

False

4.

How are assets listed on the balance sheet?

a)

Smaller assets are listed first

b)

In order of liquidity

c)

Larger assets are listed first

d)

Order does not matter

5.

What does a low gross margin (gross profit) say about a firm's activities?

a)

Cost of Goods Sold for the firm was high

b)

Cost of Goods Sold for the firm was low

c)

Revenue was too low

d)

Net Income was negative

6.

Which one of these is not a profitability (performance) ratio?

a)

Earnings per Share (EPS)

b)

Return on Sales

c)

Return on Equity

d)

Current Ratio

7.

What does not count as a capital expenditure?

a)

Purchase of land

b)

Copyrights

c)

Equipment

d)

Office Supplies

8.

Which one of these counts as debt financing?

a)

Retained Earnings

b)

Selling Stock

c)

Issuing bonds

d)

Venture Capital

9.

True or False: Secured bonds are backed only by the reputation of the issuer.

a)

True

b)

False

10.

The phenomenon of money growing over time through earned interest is called:

a)

Debt financing

b)

Time Value of Money

c)

Line of Credit

d)

Risk