Finance Test Questions
Which of the following is often cited as the most significant stumbling block in achieving
compliance goals within large financial organizations:
A. Poor data quality C. Inadequate funding
B. Lack of training D. Improper accounting system - Answers-A
Clayton recently invested $50,000 in an oil company. The company has agreed to use
Clayton's investment strictly for exploration purposes. Rather than writing off $50,000 from
its corporate taxes, the company passed the deduction on to Clayton. Clayton can now
write off the entire amount of his investment against his taxes. Clayton invested his money
in
A. offshore companies. C. government bonds.
B. flow-through shares. D. derivatives. - Answers-B
To accommodate recent regulation changes, a brokerage firm must implement new
financial reporting activities. What positive action can the firm take to help its employees
adapt to the change?
A. Hire additional employees who are knowledgeable about the regulations
B. Survey the employees to get their opinions about the regulatory changes
C. Revise the firm's vision statement to include the importance of following regulations
D. Educate and train the employees about the regulatory changes - Answers-D
, Which of the following statements regarding financial institutions is true:
A. Finance and insurance institutions typically hinder the flow or movement of money
through the economy.
B. If the flow of money into a financial institution slows down, there is less money
available for the institution to lend or invest.
C. Financial institutions concentrate the risk that individual savers and investors face
among a small number of borrowers.
D. Because each financial institution functions independently, the failure of one
financial institution has little effect on the others. - Answers-B
Which of the following can be used to identify the unethical manipulation of records in a
financial-information management system:
A. Long-term liabilities C. Audit trails
B. What-if planning D. Direct checks - Answers-C
Which of the following statements regarding accounting and finance is correct:
A. Accounting focuses on the past, while finance focuses on the future.
B. Accounting is much broader than finance, which focuses on investments.
C. Financial managers typically report to the vice president of accounting.
D. The finance department focuses on assets, while accountants track liabilities. - Answers-A
Ingrid must analyze various aspects of the completed project by comparing the results with
the objectives. What process is Ingrid likely to use to obtain all of the information for
analysis?
Which of the following is often cited as the most significant stumbling block in achieving
compliance goals within large financial organizations:
A. Poor data quality C. Inadequate funding
B. Lack of training D. Improper accounting system - Answers-A
Clayton recently invested $50,000 in an oil company. The company has agreed to use
Clayton's investment strictly for exploration purposes. Rather than writing off $50,000 from
its corporate taxes, the company passed the deduction on to Clayton. Clayton can now
write off the entire amount of his investment against his taxes. Clayton invested his money
in
A. offshore companies. C. government bonds.
B. flow-through shares. D. derivatives. - Answers-B
To accommodate recent regulation changes, a brokerage firm must implement new
financial reporting activities. What positive action can the firm take to help its employees
adapt to the change?
A. Hire additional employees who are knowledgeable about the regulations
B. Survey the employees to get their opinions about the regulatory changes
C. Revise the firm's vision statement to include the importance of following regulations
D. Educate and train the employees about the regulatory changes - Answers-D
, Which of the following statements regarding financial institutions is true:
A. Finance and insurance institutions typically hinder the flow or movement of money
through the economy.
B. If the flow of money into a financial institution slows down, there is less money
available for the institution to lend or invest.
C. Financial institutions concentrate the risk that individual savers and investors face
among a small number of borrowers.
D. Because each financial institution functions independently, the failure of one
financial institution has little effect on the others. - Answers-B
Which of the following can be used to identify the unethical manipulation of records in a
financial-information management system:
A. Long-term liabilities C. Audit trails
B. What-if planning D. Direct checks - Answers-C
Which of the following statements regarding accounting and finance is correct:
A. Accounting focuses on the past, while finance focuses on the future.
B. Accounting is much broader than finance, which focuses on investments.
C. Financial managers typically report to the vice president of accounting.
D. The finance department focuses on assets, while accountants track liabilities. - Answers-A
Ingrid must analyze various aspects of the completed project by comparing the results with
the objectives. What process is Ingrid likely to use to obtain all of the information for
analysis?
