WorksheetsFinance for beginners
Total questions: 1
Worksheet time: 15mins
Name
Class
Date
1-26.
1.
What is a Balance sheet?
a)
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.
b)
A balance sheet is a tool used for marketing purposes
c)
A balance sheet is a report that shows only the revenue of a company
d)
A balance sheet is a document used to record daily transactions of a company
2.
What is liquidity?
a)
Liquidity is how quickly a asset can be converted to cash.
b)
Liquidity is the total value of a company's outstanding shares of stock.
c)
Liquidity refers to the ability of an asset to be sold quickly with minimal price reduction.
d)
Liquidity is the measure of a company's ability to meet its short-term obligations with its current assets.
3.
What is gaap?
a)
Generally Accepted Accounting Principles
b)
Generally Acknowledged Accounting Practices
c)
Generally Approved Accounting Procedures
d)
Generally Acknowledged Accounting Principles
4.
What is capital gains?
a)
Profit earned from the sale of an asset
b)
Interest earned from a savings account
c)
Dividends received from investments
d)
Loss incurred from the sale of an asset
5.
What is net income?
a)
Net income is the total amount of money a company has left over after multiplying all expenses with its total revenue.
b)
Net income is the total amount of money a company has left over after adding all expenses to its total revenue.
c)
Net income is the total amount of money a company has left over after subtracting all expenses from its total revenue.
d)
Net income is the total amount of money a company has left over after dividing all expenses by its total revenue.
6.
What is equity?
a)
A type of debt
b)
A form of currency
c)
A legal document
d)
Ownership in a company
7.
What is depreciation?
a)
Depreciation is the immediate write-off of an asset's cost.
b)
Depreciation is the allocation of the cost of an asset over its useful life.
c)
Depreciation is the process of increasing the value of an asset.
d)
Depreciation is the appreciation of an asset over time.
8.
What is earnings per share (EPS)?
a)
Earnings per share (EPS) is a measure of a company's total revenue
b)
Earnings per share (EPS) is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.
c)
Earnings per share (EPS) is the number of employees in a company
d)
Earnings per share (EPS) is the amount of money a company spends on marketing
9.
What is net worth?
a)
Net worth is the total assets minus total liabilities.
b)
Net worth is the total assets plus total liabilities.
c)
Net worth is the total income minus total expenses.
d)
Net worth is the total savings minus total debts.
10.
What is amortization?
a)
Amortization is the process of spreading out a loan into a series of fixed payments over time, where each payment covers both the loan's principal and interest.
b)
Amortization is the process of reducing the interest rate on a loan.
c)
Amortization is the process of paying off a loan in a single lump sum.
d)
Amortization is the process of increasing the loan amount over time.
11.
What are capital markets?
a)
Capital markets are platforms for buying and selling real estate properties.
b)
Capital markets are exclusively for short-term debt securities.
c)
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold.
d)
Capital markets are places where agricultural products are traded.
12.
What is profit margin?
a)
Profit margin is the total revenue generated by a company.
b)
Profit margin is the percentage of revenue that exceeds the costs associated with generating that revenue.
c)
Profit margin is the amount of money left after all expenses are paid.
d)
Profit margin is the number of products sold by a company.
13.
What is earnings before interest taxes depreciation and amortization (EBITA)?
a)
Earnings before interest, taxes, depreciation, and amortization (EBITA) is a measure of a company's operating performance.
b)
Earnings after interest, taxes, depreciation, and amortization (EAIDA)
c)
Earnings before interest, taxes, depreciation, and appreciation (EBITDA)
d)
Earnings before interest, taxes, depreciation, and appreciation (EBITAA)
14.
What is fico score?
a)
FICO score is a type of food
b)
FICO score is a clothing brand
c)
FICO score is a type of car
d)
FICO score is a credit score used by lenders to assess the creditworthiness of individuals.
15.
What is stock options?
a)
A type of fruit available in the stock market
b)
A type of investment in real estate
c)
Contracts that give the holder the right to buy or sell a specific amount of a stock at a specified price within a specific time period.
d)
A type of currency used in stock trading
16.
What are bonds?
a)
Bonds are debt securities issued by companies or governments to raise capital.
b)
Bonds are physical certificates representing gold reserves
c)
Bonds are a type of cryptocurrency
d)
Bonds are shares of ownership in a company
17.
What are stocks?
a)
Stocks are government-issued bonds
b)
Stocks are physical goods traded on the market
c)
Stocks are ownership shares in a company.
d)
Stocks are a type of currency
18.
What is cash equivalents?
a)
Cash equivalents are short-term, highly liquid investments that are easily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
b)
Cash equivalents are investments that cannot be easily converted into cash
c)
Cash equivalents are physical currency only
d)
Cash equivalents are long-term investments with high risk
19.
What is a income statement?
a)
An income statement is a financial statement that shows a company's revenues and expenses over a specific period of time, typically a quarter or a year. It provides information on the profitability of the business by showing the net income or loss.
b)
An income statement is a summary of the company's customer feedback
c)
An income statement is a document that lists all the employees' salaries in a company
d)
An income statement is a report that details the company's marketing strategies
20.
What is return on investment (ROI)?
a)
ROI is a financial metric used to evaluate the profitability of an investment.
b)
ROI is a type of currency used in international trade
c)
ROI is a measure of time spent on an investment
d)
ROI is a scientific term for measuring weight
21.
What is cash flow?
a)
Cash flow is the amount of physical cash stored in a business
b)
Cash flow is the total revenue generated by a business
c)
Cash flow is the net amount of cash and cash-equivalents moving into and out of a business.
d)
Cash flow is the number of transactions made by a business
22.
What is compound interest?
a)
Compound interest is the interest calculated on the final amount only
b)
Compound interest is the interest calculated on a decreasing principal amount
c)
Compound interest is the interest calculated only on the initial principal
d)
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods.
23.
What is valuation?
a)
Valuation is the process of determining the age of an asset or a company.
b)
Valuation is the process of determining the current worth of an asset or a company.
c)
Valuation is the process of determining the weight of an asset or a company.
d)
Valuation is the process of determining the color of an asset or a company.
24.
What are liabilities?
a)
Liabilities are financial obligations or debts that a company owes to others.
b)
Liabilities are expenses incurred by a company
c)
Liabilities are revenues generated by a company
d)
Liabilities are assets owned by a company
25.
What is working capital?
a)
Working capital is the funds available for day-to-day operations, calculated as current assets minus current liabilities.
b)
Working capital is the revenue generated by a company
c)
Working capital is the long-term debt of a company
d)
Working capital is the total assets of a company
26.
What is term life insurance?
a)
Term life insurance provides coverage for a lifetime with no expiration date.
b)
Term life insurance only covers medical expenses and not death benefits.
c)
Term life insurance is only available for individuals over the age of 80.
d)
Term life insurance provides coverage for a specific period of time and pays out a death benefit if the insured individual passes away during that term.
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