Financial Assessment Quiz: CSM Summit

15 Questions | Total Attempts: 57

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Finance Quizzes & Trivia

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

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