Statistics for Important finance terms Part 2

Click here to take the quiz!

General Stats

  • This quiz has been taken 132 times
  • The average score is 6 of 15

Answer Stats

HintAnswer% Correct
A summary of the financial balances of an individual or organisation. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.Balance Sheet
The current worth of a future sum of money or stream of cash flows given a specified rate of return. Formula: PV = FVt / (1 + r)tPresent value
The value of a current asset at a specified date in the future based on an assumed rate of growth over time. Formula: FVt = PV(1+r)tFuture value
A company's financial statements showing the company’s revenues and expenses during a particular period.Income statement
A business or firm owned and run by two or more partners.Partnership
Cash and other assets on balance sheet that are expected to be converted to cash within a year. Examples: cash, accounts receivable, inventory, marketable securities, prepaid expensesCurrent assets
A company's debts or obligations on the balance sheet that are due within one year. Examples: short term debt, accounts payable, accrued liabilities and other debts.Current liabilities
A comprehensive report on a company's activities and financial performance throughout the preceding year for shareholders and other interested people. It includes balance sheet and income statement.Annual report
A business created as a distinct legal entity composed of one or more individuals or entities.Company
A commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.Joint venture
A business with one owner who pays personal income tax on profits from the business. It's easy to set up since there is little government regulation.Sole proprietorship
An investment should be acceptable if its discounted payback is less than some pre-specified number of years.Discounted payback rule
The interest rate you are charged if you go overdrawn on your current account. Also known as the Effective Annual Interest Rate (EAR). r = ( 1 + i n ) n − 1Effective interest rate
This is the primary goal of financial management.Maximise values of shares
The market value of a firm is determined by its earning power and the risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends.Modigliani-Miller Theorem (M&M)

Score Distribution

Percentile by Number Answered

Percent of People with Each Score

Your Score History

You have not taken this quiz