Financial Acumen Training Quiz 1

1.

Multiple Choice

30 sec

1 pt

Accounting vs Finance: Accounting function is a forward looking activity.

Always true

Always false

Sometimes true

2.

Multiple Choice

30 sec

1 pt

Accounting vs Finance: Which of the following activities is considered as a Finance activity?

Auditing

Financial reporting

Bookkeeping

Budgeting and forecasting

3.

Multiple Choice

30 sec

1 pt

Financial Statements: Which of the following is not included in the basic financial statements?

Income Statement

Cash Flows

Trial Balance

Changes in Equity

4.

Multiple Choice

30 sec

1 pt

Financial Statements: Which of the following financial statements shows a snapshot of the company' accounts at a given time?

Profit and Loss

Changes in Equity

Balance Sheet

Cash Flows

5.

Multiple Choice

30 sec

1 pt

Business Operating Cycle: Fill in the blank - A healthier business has a ________ operating cycle.

Shorter

Longer

6.

Multiple Select

45 sec

1 pt

P&L: Which of the following is considered as part of Cost of Goods Sold (COGS)? Select all that applies.

Royalties

Provision for inventory obsolescence

Salaries and incentive of field force employees

Cost of products sold

7.

Multiple Choice

45 sec

1 pt

Balance Sheet: Mr. A purchased a car worth $1.0M requiring 50% downpayment and 50% payable after 1 month. How will the transaction be recorded in his books at the time of purchase?

(+)$500K Car

(+)$500K Payable

(+)$1M Car

(+)$1M Payable

(+)$1M Car

(-)$500K Cash

(+)$500K Payable

(+)$1M Car

(+)$500K Payable

(+)$500K Equity

8.

Multiple Choice

30 sec

1 pt

Balance Sheet: Please select which of the following is not considered as an Asset account?

Accrued expense

Prepaid expense

Accounts receivables

Advance payments

9.

Multiple Choice

30 sec

1 pt

Cash Flows: What is the impact of credit term extensions given to customers in the cash flows of the company?

Decrease in cash operating requirement

Increase in cash operating requirement

No impact on cash flows

Increase or decrease depends on other factors

10.

Multiple Choice

30 sec

1 pt

Financial Statements: Which of the following is affected by the company's daily operational activities

Profit and Loss

Balance Sheet

Cash Flows

All of the above

None of the above

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