WorksheetsFinancial Concepts
Total questions: 20
Worksheet time: 15mins
What's a liquid asset?
Fixed asset
An asset easily convertible to cash
Inventory
Long-term investment
Mention 3 examples of current assets.
Cash, accounts receivable, inventory
Equipment, land, goodwill
Patents, trademarks, copyright
Bonds, shares, dividends
What is the declining balance method?
Depreciation method with fixed rate
Increasing depreciation over time
Straight-line depreciation
A type of tax calculation method
What do you understand by liquidity?
Ability to pay short-term debts easily
A measure of profitability
Total assets divided by liabilities
The solvency of a company
What do you understand by supplies?
Fixed assets
Consumables used in operations
Equipment purchased for production
Long-term inventory
What is cash flow?
Revenue earned over a period
Difference between income and expenses
The movement of money in and out of a business
Profits after taxes
What is called financial statement?
A report of income
A report summarizing financial performance
A tax declaration
A budget plan
What is the difference between financial statements in the US and UK?
Terminology and format
Only the use of IFRS
No difference
One includes taxes, the other doesn't
What is capital flight?
Money invested in startups
Large-scale outflow of capital from a country
Transfer of funds for business
Purchase of foreign assets
What are the types of bankruptcy in Bolivia?
Chapter 7 and Chapter 11
Voluntary and forced
Financial and corporate
Liquidation and reorganization
What does SEPREC mean?
Servicio de Protección al Consumidor
Sistema Plurinacional de Registro y Comercio
Superintendencia Económica Plurinacional de Regulación
Servicio Plurinacional de Resolución de Empresas
Name 2 examples of bad debts.
Doubtful loans, secured loans
Unsecured loans, defaulted payments
Non-performing loans, bankrupt accounts
Delinquent loans, questionable accounts
What is the difference between bad debts and doubtful debts?
Bad debts are unpaid; doubtful debts might be recovered
No difference
Doubtful debts are worse than bad debts
Bad debts are recovered, doubtful are not
What is auditing?
Preparing financial statements
Verifying the accuracy of financial records
Managing company operations
Monitoring employee performance
What does an operational audit consist of?
Evaluating internal controls
Reviewing compliance with legal standards
Assessing the efficiency and effectiveness of operations
Conducting an external inspection
What is the purpose of general meetings?
To review day-to-day operations
To address major company decisions
To prepare annual budgets
To submit tax declarations
What should be included in the agenda for annual general meetings?
Financial statements and budget approval
Employee performance
Day-to-day operations
Marketing strategies
Who can vote at the general meeting?
Only the CEO
All shareholders
Only major stakeholders
External auditors
What are the production costs?
Costs related to manufacturing
Administrative costs
Marketing expenses
Depreciation costs
What are the elements of cost accounting?
Direct materials, direct labor, overhead
Revenue, expenses, and profit
Inventory, assets, and liabilities
Equipment, rent, and wages
