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WorksheetsFinance Certification Practice Test
Total questions: 50
Worksheet time: 25mins
What federal legislation allows for the consolidation of commercial and investment banks, insurance companies, and securities firms?
Glass-Steagall Act
Gramm-Leach-Bliley Act
Community Reinvestment Act
Sarbanes-Oxley Act of 2002
Financial managers who are legally responsible for their clients' investments must demonstrate fiduciary responsibility, which involves
speaking with their clients once a year to review their portfolios.
acting in the best interests of their clients.
making risky investments without their clients' knowledge.
selling financial products that generate the highest commissions.
To build positive customer relations, a business must be
proactive.
profitable.
aggressive.
small.
A customer called to complain that a promised shipment had not arrived and to find out what happened. You say you will check and call back. How can you show a customer service mindset?
By calling back as soon as possible with an answer
By talking about the problem with coworkers
By helping organize the warehouse
By following up to see if the customer is satisfied with your company's service
What should you do to determine whether a customer's complaint is justified?
Ask a supervisor
Take immediate action
Restate the complaint
Investigate the problem
The Michelson Corporation must submit its annual tax return to the government. Who is responsible for collecting the necessary financial information and preparing the tax return?
Certified public accountant
Accredited stockbroker
Certified insurance agent
Personal financial advisor
Before a financial planner can recommend an appropriate financial product to a client, they must
assess the client's qualifications.
determine the client's needs.
set the client's goals.
seek advice from experts.
A farmer recently purchased 1,400 acres of farmland and six new pieces of farm machinery. What categories of resources did the farmer acquire?
Natural and land
Labor and human
Capital and labor
Natural and capital
Promotion, layaway, and credit help create __________ utility.
form
possession
time
sales
What type of market likely exists when a local car dealer has many vehicles for sale at low prices but demand is low?
Seller's
Elastic
Buyer's
Inelastic
In order to have exclusive rights to their literary and artistic works, authors and artists can apply for a
patent.
tariff.
copyright.
trademark.
Which of the following is an example of the limits to economic freedom:
Francesca wants to start her own company, so she becomes an entrepreneur.
Shawn competes with several other applicants for the job position he wants.
Patrick decides to sell his car to his younger sibling for $10,000.
A company wants to purchase an office building, but another company purchases it.
Many businesses reinvest the profits that they make to
increase their emergency funds.
expand their operations.
increase employees' bonuses.
improve their credit rating.
Which of the following is an example of how all small businesses directly strengthen a nation's economy:
Small businesses are the building blocks of large corporations.
Small businesses develop strong local ties and connections.
Small businesses control their expenses and operating costs.
Small businesses are likely to grow into large companies.
One characteristic of trade-industry businesses is that they sell
only full product lines.
products to others.
a narrow assortment of products.
only limited product lines.
High levels of inflation often have a negative effect on a business's
import quota.
secondary market.
purchasing power.
credit rating.
A willingness to learn, to change, and to take occasional risks all refer to a leader with
business knowledge.
credibility.
a passion for work and people.
flexibility.
Employees who value differences in the workplace are more satisfied and increase the company's
assets.
workforce.
productivity.
benefits.
When DeShawn’s teacher compliments his work on the group project, DeShawn gives credit to the other group members who helped. DeShawn is demonstrating
trust.
viability.
transparency.
rule of law.
Which type of financial service provider takes deposits and pays interest to the depositors?
Commercial bank
Brokerage firm
Insurance provider
Investment bank
Which of the following is a true statement about certificates of deposit:
Certificates of deposit are issued by corporations or governments.
Certificates of deposit may depreciate in value.
You must pay a penalty for withdrawing your money early.
The riskiest investment is a certificate of deposit.
What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts?
Accrual method
COD method
Check method
Cash method
What is a business's equipment listed as on a balance sheet?
Long-term liabilities
Current liabilities
Fixed assets
Current assets
The information about profit in a business’s income statement helps establish a business’s stock’s
style.
brand.
goals.
value.
An estimate of a business's income and expenses for a specified period of time is a(n)
budget.
balance sheet.
income statement.
report.
Which of the following is important to consider when calculating the value of money that has been invested:
Credit report
Exchange rate
Cash flow
Time factor
Commercial banks and brokerage firms are examples of
insurance institutions.
legislative groups.
financial intermediaries.
nonprofit organizations.
Accountants are legally required to follow established guidelines when preparing financial documents to ensure that the information presented is
subjective and consistent.
clear and consistent.
adjusted and clear.
transparent and subjective.
Which of the following is a key component of managing working capital:
Capital budgeting
Capital structure
Cash conversion cycle
Financing
An increase in free-flowing capital is a benefit of
financial globalization.
investor innovation.
economic conservatism.
global protectionism.
A business signs a contract to provide services to another business. Before signing, the businesses go over financial information to ensure the payment terms are acceptable. This is an example of using financial information to
increase sales.
enter into legal agreements.
make purchases.
boost profitability.
When dividends are paid to stockholders, how are they represented on a statement of stockholders' equity?
They are simply listed on the statement.
They are listed as a percentage of the net income.
They are added to the net income.
They are subtracted from the net income.
Which of the following is a responsibility of a managerial accountant:
Compiling the company's financial information for release to the public
Conducting a cost analysis and explaining the findings to management
Training employees and management on personal financial literacy
Making managerial decisions regarding planning, pricing, and sales
Which of the following examples best illustrates the purpose of variance analysis:
Shamaya figured out which product line would be most profitable.
Carter determined that storage costs exceeded the budgeted amount.
Eileen informed her manager how much money was left for travel.
Tariq made suggestions to his manager regarding pricing strategy.
Which of the following is an example of a cost object that is most likely to be allocated to a sales department:
Contracts
Transportation
A product line
Raw materials
A financial-information management system can help a financial manager make which of the following types of decisions:
Capital budgeting
Employee scheduling
Adding/Dropping products
Vendor selections
Which of the following software applications is commonly used when conducting financial analysis:
Groupware
Spreadsheet
Database
Presentation
At an exhibit, an employee helps customers make selections of new items that appeal to them. Which function of marketing is the salesperson performing?
Distribution
Selling
Promotion
Pricing
“Helsinki is the capital of Finland” is an example of what type of information?
Factual
Opinion
Criticism
Unproven
Information that has been printed for publication is often more reliable than many internet sources because
authors have affiliations with professional organizations.
publishers do not support special interest groups.
published information is current and up to date.
the information is typically carefully checked for accuracy.
So the company can make wise business decisions, it is important for the company to effectively manage its
demand.
ratings.
markets.
information.
Are the outputs of production limited to tangible items?
Yes, outputs are tangible goods and services.
No, outputs are limited to intangible items.
Yes, outputs are limited to tangible items.
No, outputs can be tangible or intangible.
Shia manages the day-to-day activities needed to produce and distribute smartphones for a worldwide company. Shia’s job title is most likely
marketing manager.
sales manager.
operations manager.
quality inspector.
Which of the following is a corrective action you could take if your project has derailed:
Project failure
Stakeholder management
Risk tracking
Refocusing scope
You can tell that a project was successful if it
is sustainable.
fixed a problem.
had a plan.
is widely popular.
Which of the following is an example of the impact of technology on the financial-services industry:
Greater demand for investment professionals
Blurring the lines between banking, insurance, and investments
More walk-in bank customers
Rising concern about fraud and identity theft
Which of the following is an example of a businessperson using networking techniques to develop professional financial relationships:
A. A financial planner calls a long-term client to set up an appointment to discuss the client’s financial accounts.
B. A finance manager asks employees if they have anything they would like to discuss during the departmental meeting.
C. A bank teller processes a customer’s check-deposit request and gives the customer a receipt.
D. An insurance agent gives his business card to several small-business owners at a chamber of commerce meeting.
Who typically reviews and approves the guidelines for running a corporation, which are also known as corporate governance policies?
The management team
The board of directors
The investors
The shareholders
What is the relationship between shareholders and the board of directors?
The board of directors represents the shareholders.
The shareholders make decisions for the board of directors.
The shareholders pay dividends to the board of directors.
The board of directors holds the shareholders accountable.
What are the primary functions of management?
Controlling, leading, organizing, and planning
Controlling, leading, planning, and retailing
Controlling, marketing, planning, and wholesaling
Controlling, purchasing, leading, and selling
