Introduction:
Personal finance is a crucial aspect of our lives, and it’s important to understand the basics to ensure financial stability and security. From budgeting to investments, there’s a lot to know about managing your finances. Whether you’re just starting out or have been managing your finances for years, this finance quiz is designed to test your financial IQ and help you improve your understanding of personal finance.
How to Take the Finance Quiz
To get started, simply read through the questions below and choose the best answer. Don’t worry if you don’t know the answers – this is a learning opportunity!
Finance Quiz Questions:
Topic: Basic Finance Assistant Test?
- 1. What financial statement lists assets from current to long term?
- A. Balance Sheet
- B. Income Statement
- C. Cash Flow Statement
- D. Statement of Retained earnings
- Ans: A
- 2. What balance sheet formal is verticle?
- A. Standard
- B. Report
- C. Account
- D. Inverted
- Ans : B
- 3. Income statement format that separates the cost of goods sold into categories?
- A. Standard
- B. Detailed
- C. Expanded
- D. Multi-Step
- Ans : D
- 4. Which is not a cash activity listed on the cash flow statement?
- A. Operating activities
- B. Investing activities
- C. Purchasing activities
- D. Financing activities
- Ans: C
- 5. Earnings per share show investors the __________ earned per outstanding share of stock.
- A. Operating Income
- B. Income before taxes
- C. Net Income
- D. Income before interest and taxes
- Ans: C
- 6. After a business transaction has occurred, journal entries are recorded in the:
- A. General Ledger
- B. General Journal
- C. Expense Accounts
- D. Balance Sheets
- Ans: B
- 7. Which trial balance lists all the business accounts before year-end adjusting journal entries are made.
- A. Adjusted Trial Balance
- B. Unadjusted Trial Balance
- C. Post Closing Trial Balance
- D. Pre Closing Trial Balance
- Ans: B
- 8. Entries that are made at the end of a period to correct accounts before financial statements are prepared.
- A. Closing entries
- B. Adjusting entries
- C. Reversing entries
- D. Journal entries
- Ans: B
- 9. The assumption that states that businesses can divide up their activities into artificial time periods.
- A. Business entity concept
- B. Going concern concept
- C. Monetary unit assumption
- D. Periodicity assumption
- Ans: C
- 10. Which of these is not included as a separate item in the basic accounting equation?
- A. Assets
- B. Revenue
- C. Liabilities
- D. Stockholder’s equity
- Ans: B
Topic: Some Random Questions
- What is the best way to build an emergency fund?
- A) Investing in stocks
- B) Saving a set amount of money each month
- C) Spending money as soon as you earn it
- Answer: B
- What is the most important factor in determining your credit score?
- A) Your employment history
- B) Your spending habits
- C) Your payment history
- Answer: C
- What is the best way to invest your money for the long term?
- A) Keeping all your money in a savings account
- B) Investing in a diversified portfolio of stocks and bonds
- C) Investing in real estate
- Answer: B
- What is a 401(k) plan?
- A) A type of savings account
- B) A type of investment account
- C) A type of insurance policy
- Answer: B
- What is the best way to pay off credit card debt?
- A) Making the minimum payment each month
- B) Paying more than the minimum each month
- C) Transferring the debt to another card with a lower interest rate
- Answer: B
- Investment can be defined as
- A) Person’s dedication to purchasing a house or flat
- B) Use of capital on assets to receive returns
- C) Usage of money on a production process of products and services
- D) Net additions made to the nation’s capital stocks
- Answer: B
- The concept of Financial management is
- A) Profit maximization
- B) All features of obtaining and using financial resources for company operations
- C) Organization of funds
- D) Effective Management of every company
- Answer: B
- What is the primary goal of financial management?
- A) To minimise the risk
- B) To maximise the owner’s wealth
- C) To maximise the return
- D) To raise profit
- Answer: B
- GST is a consumption of goods and service tax based on.
- A) Development
- B) Dividend
- C) Duration
- D) Destination
- Answer: D
- The finance manager is accountable for.
- A) Earning capital assets of the company
- B) Effective management of a fund
- C) Arrangement of financial resources
- D) Proper utilisation of funds
- Answer: C
- The market value of the shares is decided by
- A) The investment market
- B) The government
- C) Shareholders
- D) The respective companies
- Answer: A
- The capital budget is associated with.
- A) Long terms and short terms assets
- B) Fixed assets
- C) Long terms assets
- D) Short term assets
- Answer: C
- CAPM stands for.
- A) Capital asset pricing model.
- B) Capital amount printing model.
- C) Capital amount pricing model.
- D) Capital asset printing model.
- Answer: A
- What does financial leverage measure?
- A) No change with EBIT and EPS
- B) The sensibility of EBIT with % change with respect to output
- C) The sensibility of EPS w.r.t % change in the EBIT level
- D) % variation in the level of production
- Answer: C
- From the below-mentioned items which are financial assets?
- A) Machines
- B) Bonds
- C) Stocks
- D) B and C
- Answer: D
- On balance sheet, accruals, notes payable, and account payable are listed under which category?
- A) Current Liabilities
- B) Accumulated Liabilities
- C) Noncurrent Liabilities
- D) Accrued Liabilities
- Answer: A
- Inventories, cash and equivalents, and accounts receivables are listed as
- A) Earnings on Income Statement
- B) Payments on Income Statement
- C) Assets on the Balance Sheet
- D) Liabilities on the Balance Sheet
- Answer: C
- Which of the following is not a current asset
- A) Supplies
- B) Land
- C) Accounts Receivable
- D) Prepaid Insurance
- Answer: B
- In the situation of bankruptcy, a stock which is recorded above common stock and below debt account is
- A) Preferred Stock
- B) Debt Liabilities
- C) Common Liabilities
- D) Hybrid Stock
- Answer: A
- A firm buys products but does not pay to suppliers instantly. This is recorded as
- A) Account Receivable
- B) Account Payable
- C) Accumulated Liabilities
- D) Current Liabilities
- Answer: B
- In a balance sheet, the total of common stock and retained earnings are denoted as
- A) Common Equity
- B) Due Equity
- C) Preferred Equity
- D) Common Perpetuity
- Answer: A
- The process of recording inventory that gives a lower cost of a commodity sold in an income statement is denoted as
- A) First Out Receivable
- B) Last in First Out
- C) Last Out Receivable
- D) First in First Out
- Answer: D
- Financial securities which can be changed into cash to their book value price are categorised as
- A) Short-term Investments
- B) Inventories
- C) Long-term Investments
- D) Cash Equivalents
- Answer: D
- Earnings that have a cumulative amount and are not paid to the stockholder as a dividend is known as
- A) Common Earnings
- B) Preferred Earnings
- C) Non-paid Earnings
- D) Retained Earnings
- Answer: D
- Information that is used by investors for expecting future earnings is recorded in
- A) Annual Report
- B) Five Years Report
- C) Exchange Report
- D) Stock Report
- Answer: A
Finance Quiz Answers:
- B) Saving a set amount of money each month
- C) Your payment history
- B) Investing in a diversified portfolio of stocks and bonds
- B) A type of investment account
- B) Paying more than the minimum each month
- B) Use of capital on assets to receive returns
- B) All features of obtaining and using financial resources for company operations
- B) To maximise the owner’s wealth
- D) Destination
- C) Arrangement of financial resources
- A) The investment market
- C) Long terms assets
- A) Capital asset pricing model.
- C) The sensibility of EPS w.r.t % change in the EBIT level
- D) B and C
Finance Quiz Results:
If you answered 4 or 5 questions correctly, congratulations! You have a good understanding of personal finance. If you answered 3 or fewer questions correctly, don’t worry – there’s always room to improve. Use this finance quiz as a starting point to learn more about personal finance and improve your financial IQ.
Frequently Asked Questions About Finance Quiz:
Q: Why is it important to know about personal finance?
A: Understanding personal finance is important because it allows you to make informed decisions about how to manage your money. This includes budgeting, saving, investing, and paying off debt. Having a good understanding of personal finance can help you achieve financial stability and security.
Q: Can I take the finance quiz more than once?
A: Yes, you can take the finance quiz as many times as you like. Each time you take it, you can learn something new and improve your understanding of personal finance.
Q: Where can I learn more about personal finance?
A: There are many resources available to help you learn more about personal finance, including books, websites, and financial advisors. Consider setting aside some time each week to learn more about personal finance and improve your financial IQ.
Conclusion:
The finance quiz is a great way to test your financial IQ and improve your understanding of personal finance. Whether you’re just starting out or have been managing your finances for years, taking this quiz