WorksheetsRecap of the module
Total questions: 45
Worksheet time: 8mins
What is the main purpose of accounting?
To cook the books
To record and report financial information
To confuse stakeholders
To pay taxes
Which of the following is a financial statement?
Balance Sheet
Journal
Ledger
Trial Balance
Who are internal users of accounting information?
Investors
Government
Management
Creditors
Which branch of accounting focuses on internal decision-making?
Financial Accounting
Tax Accounting
What is a liability?
An asset
A revenue
An obligation
An equity
What does a balance sheet show?
Profitability
Cash flows
Financial position
Expenses
Which of the following is a current asset?
Land
Machinery
Accounts Receivable
Equity
Equity is calculated as:
Assets minus Liabilities
Assets plus Liabilities
Liabilities minus Assets
Assets multiplied by Liabilities
What does 'non-current liability' mean?
A liability to be settled within a year
A long-term obligation
An asset
A type of equity
Inventory is classified as:
Current Asset
Non-current Asset
Liability
Revenue
Which cost changes with activity level?
Fixed Cost
Variable Cost
Sunk Cost
Committed Cost
Which of the following is a fixed cost?
Direct materials
Electricity used in production
Factory rent
Sales commission
What is the term for cost that does not change?
Variable
Fixed
Marginal
Step
What is a mixed cost?
Purely fixed
Purely variable
Both fixed and variable
A sunk cost
What does cost behaviour analysis help with?
Tax filing
Planning and budgeting
Financial reporting
External audit
What does working capital measure?
Profit
Assets
Liquidity
Equity
Which of these is part of working capital?
Goodwill
Land
Inventory
Buildings
How is working capital calculated?
Current Assets - Current Liabilities
Total Assets - Total Liabilities
Revenue - Expenses
Equity + Liabilities
Which of these improves cash flow?
Delaying payments
Increasing inventory
Why is managing receivables important?
To increase costs
To reduce profit
To improve cash flow
To increase liabilities
What is a merger?
Buying stock
Combining two businesses
Paying dividends
Hiring staff
Which is a benefit of mergers?
Higher taxes
Reduced competition
More regulations
Lower efficiency
What is a horizontal merger?
Between unrelated industries
Between suppliers
Between same industry firms
With government
What can be a risk of mergers?
Cost synergies
Employee retention
Increased market share
Cultural clash
What is capital investment?
Buying stocks
Paying salaries
Investing in fixed assets
Selling products
Which technique uses time value of money?
Payback Period
Net Present Value
Accounting Rate of Return
Profit Margin
What does IRR stand for?
Internal Revenue Ratio
Internal Return Requirement
Internal Rate of Return
Investment Rate of Risk
Which method ignores the time value of money?
IRR
NPV
ARR
None
Why is capital budgeting important?
Short-term profits
Employee bonuses
Long-term investment decisions
Inventory management
What is equity financing?
Borrowing from bank
Using owner's money
Getting a loan
Using credit cards
Which is a source of debt financing?
Issuing shares
Retained earnings
Bank loan
Owner's savings
Which has to be repaid with interest?
Equity
Debt
Grants
Shares
What is a dividend?
Loan repayment
Profit distribution
Which is more risky for investors?
Equity
Debt
Bank deposit
Government bonds
What is the goal of business valuation?
Pay taxes
Measure profit
Determine company worth
Calculate costs
Which is a valuation method?
NPV
DCF
ARR
EBIT
DCF stands for:
Discounted Cash Flow
Direct Cash Fund
Deferred Capital Fund
Dividend Cash Flow
Which factor affects valuation?
Company location
Owner's age
Cash flows
Number of employees
What is goodwill?
Physical asset
Brand reputation value
Bank loan
Raw material
What causes foreign exchange risk?
Price changes
Currency fluctuations
Tax rates
Interest earnings
Which firm is affected by forex risk?
Local grocer
Export company
Law firm
Hair salon
What is interest rate risk?
Stock market loss
Loan value changes due to rate
Fixed price risk
Reputation risk
What happens when interest rates rise?
Borrowing is cheaper
Bond prices go up
Loans are costlier
Spending increases
Which tool manages forex risk?
Hedging
Leverage
Equity
Overdraft
Fill in the blank: ________ is the answer.
Hedging
Speculation
Arbitrage
Leverage
