This quiz works best with JavaScript enabled. Home > Finance Basics > Financial Terminology > Financial Terminology – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Terminology Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The distribution of the profits of a company to its owners. A) Dividend. B) Due diligence. C) Disposition. D) Deferred. Show Answer Correct Answer: A) Dividend. 2. Life insurance that pays a death benefit if the policyholder dies within a specified term A) Term-life insurance. B) Death insurance. C) Whole life insurance. D) None of above. Show Answer Correct Answer: A) Term-life insurance. 3. What is revenue sometimes called? A) Turnover. B) Overheads. C) Price. D) None of above. Show Answer Correct Answer: A) Turnover. 4. The finance a company raises from issuing shares rather than taking out loans is known as ..... capital. A) Equity. B) Stock. C) Dividend. D) None of above. Show Answer Correct Answer: A) Equity. 5. Insures an individual for any damage sustained to their personal automodible that is due to the fault of the insured driver A) Auto insurance. B) Comprehensive insurace. C) Collision insurance. D) None of above. Show Answer Correct Answer: C) Collision insurance. 6. Details specific goals the company will try to reach A) Business Plan. B) Business Description. C) Mission Statement. D) Vision Statement. Show Answer Correct Answer: C) Mission Statement. 7. The process to reduce the value of an intangible asset to zero, over a specified number of years. A) Amortization. B) Acquisition. C) Accounts receivable. D) Accounts payable. Show Answer Correct Answer: A) Amortization. 8. The manipulation of figures in the accounts, designed to give a better result for the company. A) Creative accounting. B) Capitalization. C) Consistency principle. D) Creditor. Show Answer Correct Answer: A) Creative accounting. 9. The fixing of the amounts to be spent in the future. Also, the official statement showing these amounts. A) Budget. B) Balance Sheet. C) Board. D) Branch. Show Answer Correct Answer: A) Budget. 10. Which term describes the amount of money it costs to make the product (ingredients, packaging) A) Turnover. B) Current Asset. C) Fixed Asset. D) Cost of sales. Show Answer Correct Answer: D) Cost of sales. 11. Insurance programs established by various state insurance departments that require companies doing business in a state to accept risks that a company would not voluntarily write. A) Deductible. B) Premium. C) Assigned Risk pool. D) Beneficiary. Show Answer Correct Answer: C) Assigned Risk pool. 12. What is the primary objective of a business? A) Make money for investors by providing goods or services. B) Make money for retailers by providing goods for services. C) Make money for customers by providing goods or services. D) Make money for employees by providing goods or services. Show Answer Correct Answer: A) Make money for investors by providing goods or services. 13. Which profit is the net profit that can be kept within the enterprise after paying out profit to the owners. A) Gross Profit. B) Net Profit. C) Retained Profit. D) None of above. Show Answer Correct Answer: C) Retained Profit. 14. What is a fixed cost? A) A cost that changes depending upon output. B) A cost that is paid to your friend. C) A cost that stays the same regardless of output. D) Money received through the selling of products. Show Answer Correct Answer: C) A cost that stays the same regardless of output. 15. Anna wants to open a bank account that allows her to do transactions such as withdrawals in ATMs, payments and transfers between accounts. Anna wants a ..... A) Insurance Fee. B) Credit card. C) Debit card. D) User agreement. Show Answer Correct Answer: C) Debit card. 16. The process of checking the finances and contracts of a company before the purchase of its assets or shares, to ensure all relevant information has been given. A) Due diligence. B) Deferred. C) Debt. D) Disposition. Show Answer Correct Answer: A) Due diligence. 17. The difference between the sales value and the direct costs of producing an item. A) Margin. B) Matching principle. C) Maturity. D) Merger. Show Answer Correct Answer: A) Margin. 18. The process of including the figures of subsidiaries and affiliates in the accounts of a holding company. A) Consolidation. B) Creative accounting. C) Confidentiality. D) Capitalization. Show Answer Correct Answer: A) Consolidation. 19. Famous paintings are usually sold by A) Bid. B) Highest price. C) Auction. D) None of above. Show Answer Correct Answer: C) Auction. 20. Another words for purchase. Normally used for very large amounts, such as buildings, factories, or another company A) Acquisition. B) Accounts receivable. C) Accounts payable. D) Affiliate. Show Answer Correct Answer: A) Acquisition. ← PreviousNext →Related QuizzesFinance Basics QuizzesFinancial Terminology Quiz 1Financial Terminology Quiz 2Financial Terminology Quiz 3Financial Terminology Quiz 5Financial Terminology Quiz 6Financial Terminology Quiz 7Financial Terminology Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books