Hi all fellow Steemians. I would like to thank all of you who participated in the "Test Your Knowledge in Financial Awareness Quiz" contest I launched one week ago. I went through all the answers submitted by all participants in the comment section of that "Finance Quiz" post.
There was ONE person who got all the answers correct for the 10 quiz questions. That person is @iamthegray.
Contest Reward:
I transferred the contest prize of 1 SBD to @iamthegray. Well done for doing a perfect job answering those 10 questions correctly.
Some people almost got the 10 questions correctly, but they made only one or two mistakes. The most missed questions were numbers 5 and 8. I am showing below the correct answers of all 10 questions and a couple of notes under both questions 5 and 8 to explain the correct answer.
Correct Answers for the Finance Quiz
1.Balance Sheet: On the balance sheet, total assets must always equal total liabilities and equity.
a. True
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
3.The Cashflow Statement: The Cashflow statement is a statement that reflects a company's current assets and current liabilities.
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.
b. False
5.Account Payable: The account payable reflects the money the customers owe to the company for purchasing its products or services.
b. False
(Account payable reflects the money the company owes to its "vendors" or "suppliers" for which the company has already received invoices for. It does not reflect the money the customers owe to the company)
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
7.Risk & Return: The more uncertain the return from an asset, the less variability therefore the less risk.
b. False
8.Liabilities: The liabilities a company endures include the cost of rent and employees salaries
b. False
(The Liabilities a company endures doesn't include any running costs. Those running costs are reflected in the "Cost" section of the "Income Statement". The liabilities reflect the following items: 1. Loans (short and long term) 2. Deferred Taxes 3. Accounts Payable 4. Accruals 5. Notes Payable).
9.Assets: An asset is future investment the company plans to spend money on.
b. False
10.The marketing and promotional expenses are usually reflected in the equity section of a company's balance sheet.
b. False
End of Correct Answers for the Finance Quiz
Congratulations for @iamthegray for winning this quiz and I hope everybody else enjoyed the process of learning. Good luck to all on the coming quizzes