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WorksheetsBasic Finance Online Exercise
Total questions: 40
Worksheet time: 35mins
The difference between total sales and total costs of the business.
Net profit.
Retained earnings
Profits earned by a business that are reinvested in the business rather than paid out as dividends
Retained Profit
Inside Profit.
The money required to set up, run and expand a business.
Finance
Assets
A loan facility from the bank that may have to be repaid at any time.
Over draft
Loan
The cost of borrowing money, or the return from saving.
Factoring
Interest
Where money is borrowed and repaid under agreed terms and conditions.
Loan
Overdraft
Everything that the business owns that has a monetary value, including cash, stocks, debtors.
Assets
Capital
Where money is borrowed directly from the public through an instrument called as.
Share capital
Debt Financing
Provision where the money against the debtors receivable can be discounted earlier.
Debtor Factoring
Invoice discounting
A facility where a product can purchased but payment is made later.
Trade Credit
Hire Purchase
Income statement is part of the financial statement.
TRUE
FALSE
Finance is an allocation of scarce resources.
TRUE
FALSE
The income statement summarizes the assets, liabilities and owners' equity of a company at a moment in time.
TRUE
FALSE
The role of financial markets is to bring savers and users of funds together at the least possible cost and inconvenience.
TRUE
FALSE
The stakeholders of a corporation are all constituencies with a stake in the fortunes of the company. They include shareholders, creditors, customers, employees, suppliers, and local communities.
TRUE
FALSE
Cash is classified as ________ based on element of the financial statements
ASSET
LIABILITY
EQUITY
EXPENSE
REVENUE
Inventory is classified as ________ based on the element of the financial statements
ASSET
LIABILITY
EQUITY
EXPENSE
REVENUE
"Taxes and licenses" is classified as ________ based on the element of the financial statements
ASSET
LIABILITY
EQUITY
EXPENSE
REVENUE
"Notes payable" is classified as ________ based on the element of the financial statements
ASSET
LIABILITY
EQUITY
EXPENSE
REVENUE
"Common stock" is classified as ________ based on the element of the financial statements
ASSET
LIABILITY
EQUITY
EXPENSE
REVENUE
If employees of a company go on strike, this is an example of which types of investment risk?
company risk
industry risk
political risk
inflation risk
A risk taker is a person who is not willing to take larger risk.
Standard deviation is a relative measure of risk.
This is a form of analysis defined by calculating how long it will take for the asset to "earn back" the money you invested in purchasing it.
internal rate of return
net present value
payback method analysis
tax accounting
The initial investment is the immediate cash outflow necessary to purchase the asset and put it into operating order.
True
False
Maximization of the Shareholder's Profit is considered to be the expansive goal of the firm.
True
False
A wise financial manager should take into consideration the impact of the overall company's valuation
True
False
To consider the welfare of the shareholders of the company, it should focus on total company profits rather than on Earnings per share.
True
False
The contract evidencing the existence of partnership is called articles of incorporation.
True
False
Performance shares may also be given to managers as incentives.
True
False
Land - 5, 500
Petty Cash - 100
Temporary Investments - 10,000
Good Will - 105,000
Buildings - 180,000
Trade Names - 200,000
Investments - 36,000
How much is the current assets?
46,100
10,100
51,600
210,100
Land - 5, 500
Petty Cash - 100
Temporary Investments - 10,000
Good Will - 105,000
Buildings - 180,000
Trade Names - 200,000
Investments - 36,000
How much is the Intangible Assets?
115,000
305,000
315,000
351,000
Land - 5, 500
Petty Cash - 100
Temporary Investments - 10,000
Good Will - 105,000
Buildings - 180,000
Trade Names - 200,000
Investments - 36,000
How much is the Non-Current Assets?
536,500
490,500
526,500
500,500
Notes Payable - 5,000
Accounts Payable - 35,900
Treasury Bills - 6,500
Wages Payable - 8,500
Interest Payable - 2,900
Taxes Payable - 6,100
Warranty Liability - 1,100
Unearned revenues - 1,500
Long-term liability - 20,000
How much is the current liabilities?
59,900
58,400
64,900
61,000
Ordinary Shares - 110,000
Retained Earnings - 220,000
Accumulated Comprehensive Income - 9,000
Treasury Stock - 50,000
How much is the shareholder's equity?
289,000
339,000
(101,000)
380,000
Cash - 500
Lease rights - 100
Accrued Interest Income - 10
Equipment - 1,000
Computer software - 3,250
Cash surrender value - 60
How much is the current assets?
570
660
510
500
Checking Account - 43,500
Savings Account - 5,000
Accounts Receivable - 45,000
Inventory - 6,500
Vehicles - 368,000
How much is the current assets?
56,500
100,000
51,500
93,500
What is Emergency Fund?
•Money set aside to cover unexpected expenses.
Difficult to access
Fund should be one to 2 months of expenses.
Open in the same salary account.
