Finance 101: Test Your Basic Knowledge! Quiz

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Cvcm_finance
C
Cvcm_finance
Community Contributor
Quizzes Created: 3 | Total Attempts: 3,361
Questions: 9 | Attempts: 1,172

SettingsSettingsSettings
Finance 101: Test Your Basic Knowledge! Quiz - Quiz

Finance 101: test your basic knowledge quiz. Just how good are you when it comes to some basic finance concepts such as debt financing and credit? Debt financing the next option that most businesses have when they don’t have enough equity. Do you understand inventory taking, control and earning per share? This quiz will offer you a quick refresher on these topics. Do give it a try and check out other quizzes just like it!


Questions and Answers
  • 1. 

    Gross Margin is the difference between:

    • A.

      Revenue and all standard cost

    • B.

      Asset and Liabilities

    • C.

      Revenue and Net Income

    Correct Answer
    A. Revenue and all standard cost
    Explanation
    Gross Margin is the difference between revenue and all standard costs. This means that it represents the amount of money left over after deducting the direct costs associated with producing goods or services. It is a measure of profitability and indicates how efficiently a company is utilizing its resources to generate revenue. By subtracting the standard costs from the revenue, the gross margin helps businesses determine their profitability and make informed decisions regarding pricing, cost control, and overall financial performance.

    Rate this question:

  • 2. 

    Which of the following is NOT one of the Overhead Spend under the NMS (Non-Material Spend)?

    • A.

      DF Fees

    • B.

      E&O Provisions

    • C.

      Freight

    Correct Answer
    B. E&O Provisions
    Explanation
    E&O Provisions is not one of the Overhead Spend under the NMS (Non-Material Spend). This means that E&O Provisions are considered as part of the Overhead Spend and not excluded from it. The other options, DF Fees and Freight, are included in the Overhead Spend category.

    Rate this question:

  • 3. 

    DF Fees is quoted ___________ with CM and is paid through AVP.

    • A.

      Monthly

    • B.

      Quarterly

    • C.

      Annually

    Correct Answer
    B. Quarterly
    Explanation
    DF Fees is quoted on a quarterly basis, meaning that the fees are calculated and quoted every three months. These fees are paid through AVP, which is the designated payment method. This suggests that the payment for DF Fees is made every quarter, aligning with the frequency at which the fees are quoted. Therefore, the correct answer is Quarterly.

    Rate this question:

  • 4. 

    What is an MPM role in reporting accurate costs?

    • A.

      Responsible for Standard Cost and BOM accuracy to the PID at both Local and Global Level

    • B.

      Accountable for accuracy of reported Product Standard Cost

    • C.

      Resolve standard cost , PPV, BOM attribute issues

    Correct Answer
    B. Accountable for accuracy of reported Product Standard Cost
    Explanation
    The MPM role in reporting accurate costs is accountable for ensuring the accuracy of the reported product standard cost. This means that they are responsible for making sure that the cost of the product is accurately calculated and reported. They may also be responsible for resolving any issues related to standard cost, purchase price variance (PPV), and bill of materials (BOM) attributes. Additionally, they are responsible for ensuring that the standard cost and BOM accuracy align with the Product Information Database (PID) at both the local and global level.

    Rate this question:

  • 5. 

    Which of the following is part of the Cisco Inventory?

    • A.

      Finished Goods at the SLC

    • B.

      Last Time Buy inventory at Avnet

    • C.

      All the above

    Correct Answer
    C. All the above
    Explanation
    All the options mentioned in the question are part of the Cisco Inventory. The "Finished Goods at the SLC" refers to the finished products that are stored at the SLC (Shipping, Logistics, and Configuration) facility. The "Last Time Buy inventory at Avnet" refers to the inventory of products that are no longer in production but are still available for purchase from the distributor Avnet. Therefore, "All the above" options include both the finished goods at the SLC and the Last Time Buy inventory at Avnet.

    Rate this question:

  • 6. 

    Which of the following is true?

    • A.

      Lower product cost translates to better EPS

    • B.

      Higher E&O and lower buy-down translates to better EPS

    • C.

      None of the above

    Correct Answer
    A. Lower product cost translates to better EPS
    Explanation
    Lower product cost translates to better EPS because when the cost of producing a product is lower, the company can either sell it at a lower price, which can increase sales volume, or maintain the same price and increase profit margin. In both cases, the company's earnings per share (EPS) would be positively affected. Lower product cost can also lead to improved efficiency and cost management, which can further contribute to better EPS.

    Rate this question:

  • 7. 

    What does "Inventory Turns" mean?

    • A.

      Metric to show how many times a year you could sell a pool of inventory

    • B.

      Weeks of supply

    • C.

      All the above

    Correct Answer
    C. All the above
    Explanation
    "Inventory Turns" refers to a metric that measures how many times a company is able to sell its inventory within a year. It is calculated by dividing the cost of goods sold by the average inventory value. This metric helps businesses assess their efficiency in managing inventory and can be used to optimize inventory levels. Additionally, "Inventory Turns" can also be interpreted as "Weeks of supply," which indicates the number of weeks a company's inventory can sustain its sales. Therefore, the correct answer is "All the above" as both explanations accurately describe what "Inventory Turns" mean.

    Rate this question:

  • 8. 

    Quality Scrap comes from

    • A.

      Quarterly E&O provision

    • B.

      Non Nettable Location

    • C.

      None of the above

    Correct Answer
    B. Non Nettable Location
    Explanation
    Quality scrap does not come from the Quarterly E&O provision, as this provision refers to the adjustment made for errors and omissions in financial statements. It also does not come from a non-nettable location, which refers to a location that is not eligible for netting or offsetting of financial transactions. Therefore, the correct answer is "None of the above."

    Rate this question:

  • 9. 

    Which of the following is NOT true about a Credit Memo?

    • A.

      Credit Memo is money owed to Cisco by a supplier

    • B.

      Credit Memo is issued by CM Finance

    • C.

      Credit Memo is issued by Cisco A/P

    Correct Answer
    C. Credit Memo is issued by Cisco A/P
    Explanation
    The given correct answer is "Credit Memo is issued by Cisco A/P." A Credit Memo is a document issued by a seller to a buyer, indicating that the buyer's account has been credited with a specific amount. It is used to correct errors or provide refunds to the buyer. While Cisco A/P (Accounts Payable) is responsible for managing the company's payments to suppliers, they do not issue Credit Memos. Therefore, this statement is not true.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 02, 2011
    Quiz Created by
    Cvcm_finance
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.