This quiz works best with JavaScript enabled. Home > Finance > Finance Basics > Financial Terminology > Financial Terminology – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Terminology Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Having insurance coverage beyond what is necessary. A) Overinsured. B) Underinsured. C) Uninsured. D) None of above. Show Answer Correct Answer: A) Overinsured. 2. The amounts that a person or organization owes to someone else in the normal daily business. A) Acquisition. B) Accounts payable. C) Accounts receivable. D) Affiliate. Show Answer Correct Answer: B) Accounts payable. 3. Life insurance that pays a benefit on the death of the insured and also accumulates a cash value. A) Universal life insurance. B) Whole life insurance. C) Term-life insurance. D) None of above. Show Answer Correct Answer: B) Whole life insurance. 4. A/An ..... is a particular type of loan for the purchase of property. A) Overdraft. B) Mortgage. C) Credit. D) None of above. Show Answer Correct Answer: B) Mortgage. 5. The idea that financial information can only be reported correctly on the basis that the company will be able to operate in the future. A) Going concern principle. B) Goodwill. C) Generally Accepted Accounting Principles. D) Holding company. Show Answer Correct Answer: A) Going concern principle. 6. In an auction, the item is sold to the person who makes the highest A) Bid. B) Price. C) Offer. D) None of above. Show Answer Correct Answer: A) Bid. 7. The cost your company incurs each month in order to operate A) Capital. B) Expenses. C) Liabilities. D) Assets. Show Answer Correct Answer: B) Expenses. 8. Joseph wants to buy a life insurance for him and his family, but he must first read the ..... to know all the conditions. A) Grace period. B) Insurance fee. C) Insurance policy. D) Replenishment. Show Answer Correct Answer: C) Insurance policy. 9. An individual whom a taxpayer can claim for credits and/or exemptions A) Independent. B) Dependent. C) Liability. D) None of above. Show Answer Correct Answer: B) Dependent. 10. A business' break-even output is measured in terms of: A) £ s. B) Units. C) Number of employees. D) Profit. Show Answer Correct Answer: B) Units. 11. Louise acquired an insurance policy for her car. Now she needs to call the bank's customer service line because she doesn't remember how much money she will pay monthly. She needs to know the ..... A) Insurance fee. B) Prepaid card. C) Insurance policy. D) POS (point of sale). Show Answer Correct Answer: A) Insurance fee. 12. Short-term debts, the money owed must be paid back within one year A) Current asset. B) Long-term liability. C) Current liability. D) Fixed asset. Show Answer Correct Answer: C) Current liability. 13. Which of the following statements best describes the term break-even? The point where: A) The business is just making a profit. B) Total revenue and fixed costs are the same. C) The business is making neither a profit or loss. D) Total costs are higher than total revenue. Show Answer Correct Answer: C) The business is making neither a profit or loss. 14. What is the output of the business? A) Goods. B) Services. C) Both of the above. D) Neither is correct. Show Answer Correct Answer: C) Both of the above. 15. These are the rules which accountants are required to follow when preparing financial statements, which are not written into law. A) Generally Accepted Accounting Principles. B) Going concern principle. C) Goodwill. D) Gearing. Show Answer Correct Answer: A) Generally Accepted Accounting Principles. 16. Elizabeth wants a special credit card for her daughter. She needs the card to have a limit that will not refresh after each cycle or after payment. She wants a(n) ..... A) Declining balance card. B) Account card. C) Private brand card. D) Credit limit increase. Show Answer Correct Answer: A) Declining balance card. 17. Here's the fifty dollars I A) Owe you. B) Pay you back. C) Must return. D) None of above. Show Answer Correct Answer: A) Owe you. 18. The structuring of certain transactions which might allow the company to leave large amounts out of the accounts. A) Prudence principle. B) Salvage value. C) Off-balance-sheet accounting. D) Parent company. Show Answer Correct Answer: C) Off-balance-sheet accounting. 19. Our state-of-the-art machinery is our major ..... . A) Asset. B) Equity. C) Possession. D) None of above. Show Answer Correct Answer: A) Asset. 20. The sales value of an asset when it can no longer be used. A) Scrap value. B) Salvage value. C) Service debt. D) Repair and maintenance. Show Answer Correct Answer: A) Scrap value. 21. Which profit is the money remaining after deducting expenses (expenditure) from gross profit A) Retained Profit. B) Net Profit. C) Gross Profit. D) None of above. Show Answer Correct Answer: B) Net Profit. 22. When one party gives another an amount of money which will be paid back at a later date A) Leasing. B) Loan. C) Liability. D) Liquidation. Show Answer Correct Answer: B) Loan. 23. Identify a non-example of accounting? A) How much value in rupees of goods or services has the business sold. B) List of investments in land, facilities, buildings, etc. the business made. C) Costs the business incurred. D) List and details of favourite customers. Show Answer Correct Answer: D) List and details of favourite customers. 24. The amounts that a person or organization is owed in the normal daily business, i.e., excluding loans and liabilities. A) Account payable. B) Amortization. C) Acquisition. D) Accounts receivable. Show Answer Correct Answer: D) Accounts receivable. 25. A bank overdraft is what? A) Fixed Asset. B) Current asset. C) Current liability. D) Long-term liability. Show Answer Correct Answer: C) Current liability. 26. Which of the following variables is often not shown on a break-even chart? A) Total costs. B) Output. C) Total variable costs. D) Total revenue. Show Answer Correct Answer: C) Total variable costs. 27. The inventory of the company, i.e., the goods which have not been sold. A) Subsidiary. B) Tax return. C) Stock. D) Prudence principle. Show Answer Correct Answer: C) Stock. 28. The proportion of debt and equity ownership in a company or an asset. A) Gearing. B) Generally Accepted Accounting Principles. C) Going concern principle. D) Goodwill. Show Answer Correct Answer: A) Gearing. 29. An item that enables products to be made and is not expected to be converted into cash any sooner than one years' time A) Current Liability. B) Fixed Asset. C) Long-term liability. D) Current Asset. Show Answer Correct Answer: B) Fixed Asset. 30. You can ..... a house and ..... a car. A) Hire / rent. B) Hire / hire. C) Rent / rent or hire. D) None of above. Show Answer Correct Answer: C) Rent / rent or hire. ← PreviousNext →Related QuizzesFinance Basics QuizzesFinance QuizzesFinancial Terminology Quiz 1Financial Terminology Quiz 2Financial Terminology Quiz 3Financial Terminology Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books