Board of Governors Examination Online Tutorial
Finance Sample Test Questions with all Correct & 100%
Verified Answers| Actual Complete Update
Net income as a percentage of gross revenues and return on equity are the two most important
indicators of:
a. Profitability
b. Credit worthiness
c. Market Strength
d. Cash Position ✔Correct Answer-A.
When reviewing assets, which element is the most important indication of an organization's
liquidity?
a. Buildings and equipment
b. Long-term investments
c. Cash and short-term investments
d. Land and other assets ✔Correct Answer-C.
Financial statements are important in order to:
a. Identify, measure, record and communicate, in dollar terms, the economic events and status of an
organization
b. Serve as a control mechanism for budgeting
c. Provide detailed financial information for control at the department level
d. Provide staffing guidelines to human resources managers ✔Correct Answer-A.
In most cases, the most favorable opinion that an organization can receive is a(n):
a. Qualified Opinion
b. Adverse Opinion
c. Disclaimer of Opinion
d. Unqualified Opinion ✔Correct Answer-D
The purpose of the statement of operations, or income statement, is to:
a. Present the financial position of the organization at a specific point in time
b. Present the reasons net assets changed from one period to another
c. Present cash receipts and where they came from and cash disbursements and where they went
during an accounting period
d. Present the operating results of the organization over a period of time ✔Correct Answer-D.
Ratios that measure an organization's long-term liquidity are called:
a. Liquidity ratios
b. Profitability ratios
c. Capital structure ratios
d. Efficiency ratios ✔Correct Answer-C.
The purpose of the strategic financial plan is to:
a. Look into the future ten year to determine what the business will look like
b. Translate the strategic plan into next year's objectives
c. Convert the operating plan into monetary terms
Finance Sample Test Questions with all Correct & 100%
Verified Answers| Actual Complete Update
Net income as a percentage of gross revenues and return on equity are the two most important
indicators of:
a. Profitability
b. Credit worthiness
c. Market Strength
d. Cash Position ✔Correct Answer-A.
When reviewing assets, which element is the most important indication of an organization's
liquidity?
a. Buildings and equipment
b. Long-term investments
c. Cash and short-term investments
d. Land and other assets ✔Correct Answer-C.
Financial statements are important in order to:
a. Identify, measure, record and communicate, in dollar terms, the economic events and status of an
organization
b. Serve as a control mechanism for budgeting
c. Provide detailed financial information for control at the department level
d. Provide staffing guidelines to human resources managers ✔Correct Answer-A.
In most cases, the most favorable opinion that an organization can receive is a(n):
a. Qualified Opinion
b. Adverse Opinion
c. Disclaimer of Opinion
d. Unqualified Opinion ✔Correct Answer-D
The purpose of the statement of operations, or income statement, is to:
a. Present the financial position of the organization at a specific point in time
b. Present the reasons net assets changed from one period to another
c. Present cash receipts and where they came from and cash disbursements and where they went
during an accounting period
d. Present the operating results of the organization over a period of time ✔Correct Answer-D.
Ratios that measure an organization's long-term liquidity are called:
a. Liquidity ratios
b. Profitability ratios
c. Capital structure ratios
d. Efficiency ratios ✔Correct Answer-C.
The purpose of the strategic financial plan is to:
a. Look into the future ten year to determine what the business will look like
b. Translate the strategic plan into next year's objectives
c. Convert the operating plan into monetary terms
