WorksheetsEOPA - Technical Skills - Financial and Investment Planning
Total questions: 15
Worksheet time: 8mins
A business earns $100,000 in revenue but has expenses totaling $75,000. What is the net profit?
$100,000
$75,000
$25,000
$50,000
Debbie’s Diamond Jewelers had $12,000 in VISA® sales during the day. Debbie is charged a 4% discount rate on VISA® deposits. The correct entry to record the VISA® sales is:
Debit Cash $11,520; Debit Credit Card Expense $480; Credit Sales $12,000
Debit Cash $12,000; Credit Credit Card Expense $480; Credit Sales $12,000
Debit Cash $12,000; Credit Sales $12,000
Debit Cash $11,000; Debit Credit Card Expense $1,000; Credit Sales $12,000
Which of the following is NOT an asset on a balance sheet?
Equipment
Accounts payable
Cash
Inventory
A company's total assets are $500,000, and total liabilities are $200,000. What is the owner’s equity?
$200,000
$500,000
$300,000
$700,000
What is the main purpose of a financial budget?
To predict future sales
To control expenses and allocate resources
To increase revenue
To reduce taxes
Which of the following would be considered a fixed expense in a personal budget?
Grocery bills
Utility costs
Mortgage or rent payments
Entertainment expenses
An investor wants to lower their financial risk by spreading their investments across multiple asset types. This strategy is called:
Speculation
Compounding
Diversification
Arbitrage
A person deposits $5,000 into a savings account that earns 4% annual interest, compounded annually. How much will the account be worth after 2 years?
$5,400
$5,800
$5,000
$5,416
A credit card company charges an annual interest rate of 18%. What is the monthly interest rate?
1.5%
18%
9%
3%
What is the primary advantage of a Roth IRA over a traditional IRA?
No taxes on withdrawals in retirement
Contributions are tax-deductible
No income limits for contributions
Higher contribution limits
What is the primary role of the Federal Reserve?
To regulate financial markets
To determine tax rates
To manage the U.S. money supply and interest rates
To oversee stock market trading
A company has a current ratio of 2.0. This means that:
It has twice as many current liabilities as current assets
It has twice as many current assets as current liabilities
It has no outstanding liabilities
It has more liabilities than assets
Which of the following is a benefit of a 401(k) retirement plan?
Tax-free withdrawals at any time
Employer matching contributions
No limits on contributions
Immediate penalty-free withdrawals
A stock market is experiencing a period of prolonged price declines. This is known as a:
Bull market
Bear market
Stagnant market
Growth market
Which of the following factors has the greatest impact on an individual's credit score?
Number of credit cards owned
Payment history
Employment status
Checking account balance
