Financial Assessment Quiz: CSM Summit

15 Questions | By Mgett | Updated: Mar 21, 2022 | Attempts: 108

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Questions and Answers

1.

Which best describes the "art" of finance and accounting? (chapter 1)
- A.
  
  Using limited data to come as close as possible to an accurate description of how well a company is performing
- B.
  
  Using limited data to provide the best looking snapshot of how a company is performing
- C.
  
  Exposing every detail of how a company runs its business
- D.
  
  Putting lipstick on a pig
2.

What are "pro-forma" results?
- A.
  
  Consolidated financial results for all units of a business
- B.
  
  An estimate of financial results for a future time period
- C.
  
  The latest diet fad
- D.
  
  Another term for non-GAAP results
3.

When might it be useful to look at non-GAAP financial reporting?
- A.
  
  When you want to find a really good bottle of wine
- B.
  
  When a company has an unusual, one-time expense and you want to understand the overall health of the company over time
- C.
  
  Before an audit
- D.
  
  It’s not useful. It’s mainly a way for companies to make their financial results look better than they are
4.

What does "above the line" mean? (chapter 8)
- A.
  
  Anything above net profit on an income statement
- B.
  
  Anything above EBIT on an income statement
- C.
  
  The title of the new Leonardo DiCaprio movie
- D.
  
  Anything above gross profit on an income statement
5.

Which question would you ask to determine whether an expense is a Cost of Sale or Operating Expense?
- A.
  
  Is the expense spread out over time?
- B.
  
  Is this expense silly?
- C.
  
  Does the expense directly relate to manufacturing or selling the product or service?
- D.
  
  Does the expense belong on the Cash Flow Statement
6.

What is an example of Cost of Goods Sold (COGS)? (chapter 1)
- A.
  
  Cost to host our software with Amazon Web Services (AWS)
- B.
  
  Rob Asscherick's new carbon fiber bike wheels
- C.
  
  CSM salaries
- D.
  
  Sales commissions
7.

What does the income statement show? (chapter 1)
- A.
  
  How much cash was used for the stock repurchase program.
- B.
  
  The ROI on Mike Hack's robot suits.
- C.
  
  Revenues, expenses, and profits for a period of time.
- D.
  
  Revenues, expenses, and profits since the company was founded.
8.

When is revenue booked?
- A.
  
  When Umberto says so.
- B.
  
  When a customer signs an order form (contract)
- C.
  
  When product or services are delivered to the customer
- D.
  
  At the point of invoice.
9.

When is revenue recognized?
- A.
  
  When the accounting books are “closed” for the time period
- B.
  
  Each and every Friday!
- C.
  
  When the invoice is paid
- D.
  
  When the related product or service is delivered to the customer
10.

What is an example of a capital expense? (chapter 1)
- A.
  
  Bob's donuts
- B.
  
  Monthly rent for an offshore data center
- C.
  
  Large purchase of equipment for an offshore data center
- D.
  
  Salaries for c-level executives
11.

Which is NOT found on the income statement?
- A.
  
  Revenues
- B.
  
  Net profit
- C.
  
  Sales, administrative, and general expenses
- D.
  
  Capital expenditures
12.

What are the two ways in which InsideView positively affects a customer's income statement?
- A.
  
  Increased sales and decreased gross margin
- B.
  
  Decreased selling expenses and decreased gross margin
- C.
  
  Increased sales revenue and decreased selling expenses
- D.
  
  Increased length of happy hour and decreased wine consumption
13.

Using the information found below, calculate the gross profit margin: - Revenue = $100 - Cost of Goods Sold (COGS) = $20 - Taxes = $5
- A.
  
  80%
- B.
  
  20%
- C.
  
  75%
- D.
  
  85%
14.

Using the information found below, calculate the net profit margin: - Sales = $200 - Cost of Sales = $125 - Taxes = $5 - Operating Expenses = $50
- A.
  
  10%
- B.
  
  20%
- C.
  
  $20
- D.
  
  $275
15.

Which is the most direct measure of how efficiently a management team is running a company?
- A.
  
  Gross margin
- B.
  
  Operating margin
- C.
  
  Net margin
- D.
  
  Margarine