As I believe in raising our financial intelligence to be successful investors and entrepreneurs, I'm running a "Finance Contest" in the form of a 10-question true or false quiz. I encourage you all to participate in this contest. It's fun, educational and a good chance not only to test your financial awareness level, but to also raise it. If you want to start your own business, evaluate a running business, do company valuation or just understand the numbers and entries of financial statements, you need to have a certain level of financial knowledge. Even if you don't currently know the answers to the questions included in the following "Finance Quiz", I still encourage you to find out the answers through searching the net, looking up answers in some of the finance books you might have or just ask other people who know.
Contest Rules:
Upvote this post
Go through the following finance quiz and record the answers of the 10 questions in one comment in the comment section below. (Example: 1.a 2.b 3.a ...etc)
You have to answer all 10 question. Any question(s) not answered will disqualify you from winning this contest.
This is an open-book quiz, so you can use any source of information (online or offline) and you don't need to mention that source. Some of the sites you might want to refer to are www.investopedia.com , www.wikipedia.org, www.google.com. You can use any other site. the most important thing is to get all 10 questions answered correctly.
The deadline for submitting your answers is the end of the life time of this post; i.e: 7 days from the start of this post.
You don't have to resteem this post
There is no limit on the number of people winning this contest. All those who get all the 10 correct answers will win the rewards described in the coming section.
Contest Rewards:
As I mentioned in the point number (7) in the Contest Rules, there is no limit to the number of winners. Anyone and everyone who gets all the 10 questions answered correctly, will win 1 SBD transferred to his/her Steemit wallet after the end of the lifetime of this post (after 7 days). If one or more questions have a wrong answer, the person submitting such entry will not considered a winner even if he/she gets other questions answered correctly. Remember, you have to have 10 correct answers for the 10 questions.
1.Balance Sheet: On the balance sheet, total assets must always equal total liabilities and equity.
a. True
b. False
2.Income Statement: The income statement shows the difference between a firm's income and its costs – i.e. its profits – during a specified period of time. However, not all reported income comes in the form or cash.
a. True
b. False
3.The Cashflow Statement: The Cashflow statement is a statement that reflects a company's current assets and current liabilities.
a. True
b. False
4.Account Receivable: The account receivables are the commission a company pays to its sales person for the business they bring to the company.
a. True
b. False
5.Account Payable: The account payable reflects the money the customers owe to the company for purchasing its products or services.
a. True
b. False
6.Asset Management Ratios: The inventory turnover ratio and days sales outstanding (DSO) are two ratios that are used to assess how efficiently a firm is managing its assets.
a. True
b. False
7.Risk & Return: The more uncertain the return from an asset, the less variability therefore the less risk.
a. True
b. False
8.Liabilities: The liabilities a company endures include the cost of rent and employees salaries
a. True
b. False
9.Assets: An asset is future investment the company plans to spend money on.
a. True
b. False
10.The marketing and promotional expenses are usually reflected in the equity section of a company's balance sheet.
a. True
b. False
