The Ultimate Finance Exam: Trivia Quiz

10 Questions | By 10sjjohn | Updated: Mar 22, 2022 | Attempts: 1512

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The Ultimate Finance Exam: Trivia Quiz - Quiz

Finance is all about managing the money which incorporates affairs like investing, borrowing, lending, budgeting, and saving. Financial schemes differ according to need whether personal, corporate, or government finance. This quiz has been created to test your knowledge about the study of money, banking, assets, and liabilities. Read the questions carefully as they are a little bit hard. So, let's try out the quiz. All the best!

Questions and Answers

1.

BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required new funds?
- A.
  
  20,000
- B.
  
  100,000
- C.
  
  50,000
- D.
  
  75,000
2.

A firm has forecasted sales of $3,000 in April, $4,500 in May, and $6,500 in June. All sales are on credit. 30% is collected the month of sale and the remainder the following month. What will be the balance in accounts receivable at the beginning of July?
- A.
  
  $4,550
- B.
  
  $1,950
- C.
  
  $6,500
- D.
  
  $5,100
3.

Agency problems are least likely to arise in which organizational form?
- A.
  
  Corporation
- B.
  
  Subchapter S corporation
- C.
  
  Sole Proprietorship
- D.
  
  Limited Partnership
4.

The Sarbanes-Oxley Act was passed in an effort to
- A.
  
  Protect small business form large corporations dominating the market.
- B.
  
  Ensure that partnerships divide profits among partners in a fair manner.
- C.
  
  Guarantee outside auditors can contorl corporate accounting practices.
- D.
  
  Control corrupt corporate behavior
5.

Allen Lumber Company had earnings after taxes of $580,000 in the year 2006 with 400,000 shares outstanding. On January 1, 2007, the firm issued 35,000 new shares. Because of the proceeds from these new shares and other operating improvements, 2007 earnings were 25 percent higher than in 2006. Earnings per share for the year 2007 was
- A.
  
  $1.67
- B.
  
  $1.45
- C.
  
  $1.81
- D.
  
  None of the above
6.

The Bubba Corp. had a net income before taxes of $200,000 and sales of $2,000,000. If it is in the 50% tax bracket its after-tax profit margin in
- A.
  
  12%
- B.
  
  5%
- C.
  
  20%
- D.
  
  25%
7.

A firm has a debt to equity ratio of 50%, a debt of $300,000, and a net income of $90,000. The return on equity is?
- A.
  
  60%
- B.
  
  30%
- C.
  
  15%
- D.
  
  Not enough info.
8.

XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3months). What was the sales figure for the year?
- A.
  
  $60,000
- B.
  
  $6,000,000
- C.
  
  $24,000,000
- D.
  
  None of the above
9.

What is the expected value of the total sales projection? Outcome Probability Units Price Bad .20 100 $20 Normal .50 180 $25 Great .30 210 $30
- A.
  
  $4,540
- B.
  
  $4,500
- C.
  
  $12,800
- D.
  
  $3,678
10.

XZY Co. has forecasted June sales of 600 units and July sales of 1000 unity. The company maintains ending inventory equal to 125% of next month's sales. June's beginning inventory reflects this policy. What is June's required production?
- A.
  
  400 units
- B.
  
  500 units
- C.
  
  0 units
- D.
  
  1100 units