Finance 201 Brau Exam Questions and Correct
Answers
Which of the following is NOT one of the 12 points in the article "One for the Money"?
Avoid debt
John bought a car in 2008 for $10,000. He took out a $9,000 loan in 2008 to borrow the
car. At 10/1/11 John has $500 total cash. His car is now worth $6,000 and his
outstanding loan balance is $7,000. What is John's net worth?
-$500
The first step discussed in the Financial Planning Process is:
Calculate your current financial position, or your "Net Worth."
In the Debt-Elimination Calendar in the pamphlet "One for the Money," it advises to
first pay off the debt with:
the highest interest rate
the earliets payoff date
Assume ABC company is a company with stock listed on the NYSE and is in good
standing with the stock exchange. Which of the following in NOT true:
No financial statements of ABC are available to the public, since they may disclose
competitive information about the company and its business in a way that could harm the
company.
What is the standard accounting equation for business?
Assets = Liabilities + Owner's Equity
If a company is not yet listed on a stock exchange and wishes to raise money, it could
issue stock through a process called:
IPO
Market capitalization is calculated by multiplying a company's total assets by its EPS.
, false
In the pamphlet, "All is Safely Gathered In," it states to "Avoid debt, with the
exception of_________ or ________ or ________."
buying a modest home; paying for education; other vital needs
What type of stock usually performs independent of the general economy—such as
companies that produce food and medicine—so that when the general economy is down,
they are not normally down also?
defensive stock
As evident by the stock market game, on a short-term daily basis it is easy to predict the
direction of the stock market.
false
Which of the following accounts would be found on the income statement?
Rent expense $500
EBITDA is an acronym standing for "Earnings before interest, transportation, deficits,
and accumulation."
false
Which of the following statements is NOT true about The Dow:
Some of the Dow components are public companies and some are private companies.
According to the "One for the Money" pamphlet, "The American Bar Association has
indicated that 89% of all divorces can be traced to quarrels and accusations over
money."
true
Which of the following equations equals "Net Worth"?
Assets - Liabilities
The financial statement that is considered a "snap-shot" in time is the:
Answers
Which of the following is NOT one of the 12 points in the article "One for the Money"?
Avoid debt
John bought a car in 2008 for $10,000. He took out a $9,000 loan in 2008 to borrow the
car. At 10/1/11 John has $500 total cash. His car is now worth $6,000 and his
outstanding loan balance is $7,000. What is John's net worth?
-$500
The first step discussed in the Financial Planning Process is:
Calculate your current financial position, or your "Net Worth."
In the Debt-Elimination Calendar in the pamphlet "One for the Money," it advises to
first pay off the debt with:
the highest interest rate
the earliets payoff date
Assume ABC company is a company with stock listed on the NYSE and is in good
standing with the stock exchange. Which of the following in NOT true:
No financial statements of ABC are available to the public, since they may disclose
competitive information about the company and its business in a way that could harm the
company.
What is the standard accounting equation for business?
Assets = Liabilities + Owner's Equity
If a company is not yet listed on a stock exchange and wishes to raise money, it could
issue stock through a process called:
IPO
Market capitalization is calculated by multiplying a company's total assets by its EPS.
, false
In the pamphlet, "All is Safely Gathered In," it states to "Avoid debt, with the
exception of_________ or ________ or ________."
buying a modest home; paying for education; other vital needs
What type of stock usually performs independent of the general economy—such as
companies that produce food and medicine—so that when the general economy is down,
they are not normally down also?
defensive stock
As evident by the stock market game, on a short-term daily basis it is easy to predict the
direction of the stock market.
false
Which of the following accounts would be found on the income statement?
Rent expense $500
EBITDA is an acronym standing for "Earnings before interest, transportation, deficits,
and accumulation."
false
Which of the following statements is NOT true about The Dow:
Some of the Dow components are public companies and some are private companies.
According to the "One for the Money" pamphlet, "The American Bar Association has
indicated that 89% of all divorces can be traced to quarrels and accusations over
money."
true
Which of the following equations equals "Net Worth"?
Assets - Liabilities
The financial statement that is considered a "snap-shot" in time is the:
