Let's Check To See What You Have Learnt So Far In Finance!

By Sandra Taylor
Sandra Taylor, Retired Education Administrator
Sandra Taylor Wiggan, a seasoned education administrator, has retired after a fulfilling career. Her dedication to education has left a lasting impact, shaping the lives of many. Now, she enjoys a well-deserved retirement, reflecting on her contributions to the field
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, Retired Education Administrator
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Lets Check To See What You Have Learnt So Far In Finance! - Quiz


Let's check to see what you have learnt so far in Finance!


Questions and Answers
  • 1. 

    Building blocks in the construction industry is an example of which type of cost?

    • A.

      Variable

    • B.

      Fixed

    • C.

      Sunk

    Correct Answer
    A. Variable
    Explanation
    Building blocks in the construction industry can be considered as a variable cost because the quantity of building blocks required can vary depending on the size and complexity of the construction project. As the project size increases, the cost of building blocks will also increase proportionally. Conversely, if the project size decreases, the cost of building blocks will decrease as well. Therefore, the cost of building blocks is directly related to the level of activity or output in the construction industry, making it a variable cost.

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  • 2. 

    Profits kept back in the company for reinvestment is called _____________  profit. (1 word)

    Correct Answer
    Retained
    retained
    RETAINED
    Explanation
    Retained profit refers to the portion of a company's profit that is not distributed to shareholders as dividends, but instead is kept within the company for reinvestment purposes. It is a form of internal financing that allows the company to fund its growth and expansion initiatives, such as acquiring new assets, developing new products, or expanding into new markets. By retaining the profit, the company can strengthen its financial position and increase its future earning potential.

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  • 3. 

    The opposite of a cash surplus is a cash _ _ _ _ _ _ _ .

    • A.

      Loss

    • B.

      Deficit

    • C.

      Excess

    • D.

      Bankruptcy

    Correct Answer
    B. Deficit
    Explanation
    A cash surplus refers to having more cash inflows than outflows, resulting in a positive balance. Therefore, the opposite of a cash surplus would be a cash deficit, which indicates that there are more cash outflows than inflows, resulting in a negative balance.

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  • 4. 

    A store sells a box of candy for $18 after buying it for $14.50.If fixed costs per month is $4,560.50, At least how many boxes must be sold for the store to say it is profitable?

    Correct Answer
    1304
    1304
    1304
    Explanation
    To determine the minimum number of boxes that must be sold for the store to be profitable, we need to consider the profit made on each box. The profit per box is calculated by subtracting the cost price from the selling price. In this case, the profit per box is $18 - $14.50 = $3.50.

    To cover the fixed costs per month of $4,560.50, the store needs to generate enough profit to cover this amount. Dividing the fixed costs by the profit per box gives us $4,560.50 / $3.50 = 1304.14285714. Since we cannot sell a fraction of a box, the store needs to sell at least 1305 boxes to be profitable.

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  • 5. 

    The suppliers of goods to a retail store may offer the retailer goods on credit with an arrangement for payment at a later date.  This method of financing is called:

    Correct Answer
    Trade credit
    TRADE CREDIT
    trade credit
    Explanation
    Trade credit is a method of financing where suppliers offer goods to a retailer on credit, allowing the retailer to make payment at a later date. This arrangement allows the retailer to acquire inventory without immediate cash payment, providing them with flexibility and liquidity. Trade credit is a common practice in the retail industry, as it helps businesses manage their cash flow and maintain relationships with suppliers.

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Sandra Taylor |Retired Education Administrator
Sandra Taylor Wiggan, a seasoned education administrator, has retired after a fulfilling career. Her dedication to education has left a lasting impact, shaping the lives of many. Now, she enjoys a well-deserved retirement, reflecting on her contributions to the field

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  • Current Version
  • Nov 14, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 09, 2009
    Quiz Created by
    Sandra Taylor
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