Finance for Non-Financial Professionals Quiz Answer. In this post you will get Quiz & Assignment Answer Of Finance for Non-Financial Professionals
Finance for Non-Financial Professionals Quiz
Offered By ”University of California”
Module 1 Quiz
1.
Question 1
Which of the following is referred to as the Accounting Equation?
1 point
- Assets = Liabilities + Equity
- Equity = Liabilities + Assets
- Liabilities = Assets + Equity
- Assets = Liabilities – Equity
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2.
Question 2
Which of the following make up the Finance Equation? (select all that apply)
1 point
- Revenues = Price x Volume
- Costs = Fixed + Variable
- Profit = Revenues – Costs
- Income = Sales – COGS
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3.
Question 3
Which of the following are referred to as the building blocks of accounting? (select all that apply)
1 point
- Assets
- Debits
- Credits
- Liabilities
- Equity
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4.
Question 4
Which of the following is NOT one of the four Financial Statements?
1 point
- Income Statement
- Balance Sheet
- Statement of Accounts
- Statement of Cash Flows
- Shareholder’s Equity
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5.
Question 5
Generally Accepted Accounting Principles or GAAP are:
1 point
- Accounting rules enforced by law
- Accounting principles and guidelines
- Enforced by law in some countries but not in others
- The only way to be sure your books are correct
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6.
Question 6
The balance sheet is the representation of what?
1 point
- the accounting equation
- company profits
- shareholder’s equity
- company’s cash flow
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7.
Question 7
Consider this example. Soriyah is an entrepreneur who has just established her own company selling imported Persian rugs. She names her business Rugs of the World and invests $325,000 in the company in exchange for all of its newly issued shares.
Which of the following statements are true?
1 point
- Assets and equity are both recorded as $325,000
- Assets are recorded as $325,000
- Equity is recorded as $325,000
- Liabilities are recorded as $325,000
- All of the statements are true
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8.
Question 8
In one of the videos, the instructor says that “in Accounting you can have minus $1,000,000, but in Finance you can’t.” This statement explains what?
1 point
- Accounting is theory but Finance is practice
- Finance looks at financial performance whereas Accounting records the transactions
- Balance sheets can be deceptive
- Most income statements are only approximations
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9.
Question 9
Which of these is a snapshot of a company’s finances at a particular point in time?
1 point
- Balance sheet
- Income statement
- Statement of shareholders’ equity
- GAAP
Module 2 Quiz
1.
Question 1
What is most commonly used when large batches of nearly identical items are being produced?
1 point
Process Costing
Standard Costing
Job Order Costing
Batch Costing
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2.
Question 2
What uses direct costs and ALL overhead costs?
1 point
Standard Costing
Absorption Costing
Full Costing
Direct + Costing
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3.
Question 3
To calculate break-even you need the following: (select all that apply)
1 point
Fixed Costs
Variable Costs
Price Per Unit
Inflation rate
Cash flow
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4.
Question 4
When a business is going well and running near capacity, full costing should be used and products should be priced at or below their full cost.
1 point
True
False
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5.
Question 5
Understanding costing (and pricing) options allows us to better respond to the demands of our sector.
1 point
True
False
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6.
Question 6
Which of these cost methods does the instructor suggest a pizza business might use, given the variability of the cost of cheese?
1 point
Standard costing
Job order costing
Direct costing
Unit costing
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7.
Question 7
In this cost allocation method, the pizza business owner will include the cost of the ingredients of the pizza, but will not include things like rent and salaries.
1 point
Direct costing
Absorption costing
Full costing
Average costing
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8.
Question 8
Todd owns a small factory that makes basketballs for professional teams. He likely uses what method for assigning costs?
1 point
Process costing, since his products are
nearly identical
Standard costing, due to large variances in his
production
Job order costing, since the number of basketballs
produced varies from month to month
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9.
Question 9
In calculating a break-even analysis, you must take into account what pieces of information? (Select all that apply)
1 point
Fixed costs
Variable costs
Discounted costs
Marginal costs
Opportunity costs
Module 3 Quiz
1.
Question 1
_____________________ ratios help us understand a company’s ability to turn short-term assets into cash.
1 point
Liquidity
Asset Turnover
Profitability
Debt
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2.
Question 2
_____________________ ratios help us understand a company’s debt load as well as its mix of equity and debt.
1 point
Liquidity
Asset Turnover
Profitability
Debt
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3.
Question 3
_____________________ ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings.
1 point
Liquidity
Asset Turnover
Profitability
Debt
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4.
Question 4
_____________________ ratios are a class of financial metrics that is used to measure the turnover of assets.
1 point
Liquidity
Asset Turnover
Profitability
Debt Ratios
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5.
Question 5
According to the DuPont Pyramid, operating efficiency is:
1 point
measured by profit margin
measured by total asset turnover
measured by the equity multiplier
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6.
Question 6
According to the DuPont Pyramid, asset use efficiency is:
1 point
measured by profit margin
measured by total asset turnover
measured by the equity multiplier
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7.
Question 7
According to the DuPont Pyramid, financial leverage is:
1 point
measured by profit margin
measured by total asset turnover
measured by the equity multiplier
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8.
Question 8
The
Quick Ratio is known as the “acid test” of ratios because it’s a quick way of
finding out whether a company has enough assets to cover its liabilities.
1 point
True
False
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9.
Question 9
The
Quick Ratio does not include a
company’s inventory because companies can’t always convert their inventory into
a liquid asset in order to pay their bills.
1 point
True
False
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10.
Question 10
The earnings per share (EPS) ratio:
1 point
tells you how much the market is willing to pay
for each dollar of profit in a company
tells you how much a company is leveraged
indicates a company’s profitability
tells you the profit per sales dollar
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11.
Question 11
The price earnings (P/E) ratio:
1 point
tells you how much the market is willing to pay for each dollar of profit in a company
tells you how much a company is leveraged
indicates a company’s projected profitability
tells you the profit per sales dollar
Module 4 Quiz
1.
Question 1
Which is the simplest form of company valuation?
1 point
Market Valuation
Multiples Method
Discounted Cash Flow (DCF) Analysis
Comparison Method
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2.
Question 2
To use the Market Valuation method, you need the company’s stock price and the number of:
1 point
Employees
Outstanding Shares
Issued Shares
Dividends Paid
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3.
Question 3
Using a set of common metrics to valuate a company based on other companies in the same sector is better known as:
1 point
Market Valuation
Multiples Method
Discounted Cash Flow (DCF) Analysis
Comparison Method
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4.
Question 4
The Discounted Cash Flow method uses a company’s free cash flows and a discount rate to calculate the:
1 point
Internal Rate of Return (IRR)
Net Present Value (NPV)
Cost of Goods Sold (GOGS)
DuPont Pyramid
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5.
Question 5
The _______________________ is the yield of an investment expressed as a percentage.
1 point
Internal Rate of Return (IRR)
Net Present Value (NPV)
Cost of Goods Sold (GOGS)
DuPont Pyramid
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6.
Question 6
The IRR of a venture is the rate of return at which the NPV = 0.
1 point
True
False
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7.
Question 7
Valuation answers the question “What is a company worth?”
1 point
True
False
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8.
Question 8
Which of the three valuation methods discussed is driven by traders and can suffer from a “herd mentality”?
1 point
Market valuation
Multiples method
Discounted cash flow (DCF) analysis
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9.
Question 9
Because the Multiples method of valuation compares companies that are in the same sector, you should choose 15 or 20 companies to examine.
1 point
True
False
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10.
Question 10
The premise behind Net Present Value is:
1 point
Money today is worth more than money a year from now.
A company may shrink or expand in the future
What investors do today may not predict what they’ll do a year from now
Investors are fickle and may sell their stocks on a whim