This quiz works best with JavaScript enabled. Home > Finance > Finance Basics > Financial Terminology > Financial Terminology – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Terminology Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A mortgage is classed as what? A) Current asset. B) Fixed asset. C) Current liability. D) Long-term liability. Show Answer Correct Answer: D) Long-term liability. 2. I earn a lot of money, but I have a lot of A) Payouts. B) Expenses. C) Paying. D) None of above. Show Answer Correct Answer: B) Expenses. 3. The amount of money put into the enterprise by the owner to start up the business so that it can begin trading A) Net Profit. B) Retained Profit. C) Capital. D) Gross Profit. Show Answer Correct Answer: C) Capital. 4. When is a business making a profit? A) When revenues are higher than costs. B) When revenues equal costs. C) When revenues are less than costs. D) None of above. Show Answer Correct Answer: A) When revenues are higher than costs. 5. Either cash or items that can be converted into cash easily A) Current Asset. B) Long-term liability. C) Fixed asset. D) Current liability. Show Answer Correct Answer: A) Current Asset. 6. The idea that financial information should be reported conservatively, so that it is not possible that the overall value of a company is overstated. A) Consistency principle. B) Going concern principle. C) Prudence principle. D) Matching principle. Show Answer Correct Answer: C) Prudence principle. 7. These are all types of what:Inventory, Cash, Debtors A) Current liability. B) Long-term liability. C) Current asset. D) Fixed asset. Show Answer Correct Answer: C) Current asset. 8. The practice of comparing the price of products or services from different vendors before buying. A) Uninsuring. B) Policy browsing. C) Comparison shopping. D) Claim. Show Answer Correct Answer: C) Comparison shopping. 9. A payment made by a beneficiary (especially for health services) in addition to that made by an insurer. A) Premium. B) Co-pay. C) Deductible. D) None of above. Show Answer Correct Answer: B) Co-pay. 10. Which of these is not a fixed asset? A) Equipment. B) Vehicles. C) Premises. D) Debtors. Show Answer Correct Answer: D) Debtors. 11. Which of the following is an example of an investment project a successful independent clothing retailer could realistically undertake? A) Buying new office furniture. B) Purchasing new vehicles. C) Opening a new store. D) Buying personalised stationery. Show Answer Correct Answer: C) Opening a new store. 12. They could not pay their debts and faced ..... . A) Overpayment. B) Warranty. C) Bankruptcy. D) None of above. Show Answer Correct Answer: C) Bankruptcy. 13. When a company spends money on something which will last for more than one year. This amount is normally put into the Balance Sheet. A) Consolidation. B) Consistency principle. C) Confidentiality. D) Capitalization. Show Answer Correct Answer: D) Capitalization. 14. A source of income for workers who have lost their jobs through no fault of their own A) Disability. B) Ability. C) Property. D) Unemployment. Show Answer Correct Answer: D) Unemployment. 15. Money lent to start-up businesses is known as risk or ..... capital. A) Share. B) Venture. C) Working. D) None of above. Show Answer Correct Answer: B) Venture. 16. A plan presenting financial forecasts for the business A) Financial Plan. B) Business Loan Plan. C) Loan Proposal. D) Investor Plan. Show Answer Correct Answer: A) Financial Plan. 17. The health care items or services covered under a health insurance plan A) Out-of-pocket. B) Premium. C) Insurance benefit. D) None of above. Show Answer Correct Answer: C) Insurance benefit. 18. A person or organization to whom money is owed. A) Certified Public Accountant (CPA). B) Consistency principle. C) Confidentiality. D) Creditor. Show Answer Correct Answer: D) Creditor. 19. Payment made to the beneficiary of a life insurance policy upon the death of the insured person. A) Death benefit. B) Life benefit. C) Unlife benefit. D) None of above. Show Answer Correct Answer: A) Death benefit. 20. In Japan, the US dollar is A) Foreign money. B) Strange money. C) A foreign currency. D) None of above. Show Answer Correct Answer: C) A foreign currency. ← PreviousRelated QuizzesFinance Basics QuizzesFinance QuizzesFinancial Terminology Quiz 1Financial Terminology Quiz 2Financial Terminology Quiz 3Financial Terminology Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books