QUESTION Vertical diversification is the situation in which you have assets that address different aspects of the same situation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION When does a company record its expenses? A) when the company receives a bill B) when the company pays a bill C) when the company’s supplier has put a bill in the mail D) when the company decides to purchase something ANSWER A
Date: September 3rd, 2020
QUESTION When does an expense become a cash outflow? A) when a company makes a withdrawal from its bank B) when a company decides to make a purchase C) when a company receives a bill D) when a company pays a bill ANSWER D
Date: September 3rd, 2020
QUESTION Investments in objects, such as coins, stamps, and art, are considered to be very liquid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION Expenses are divided into A) operating expenses and income. B) cost of revenue and operating expenses. C) cash out and cash deferred. D) invoices received and invoices paid. ANSWER B
Date: September 3rd, 2020
QUESTION Most wealthy people know that ________. a. just wanting a million dollars is enough b. the more money you earn, the less you pay in taxes and expenses c. you cannot put all your financial “eggs” in one basket d. spending a lot of money is the path to riches ANSWER c
Date: September 3rd, 2020
QUESTION What is another term for cost of revenue? A) cost of profit B) cost of operating income C) cost of goods sold D) cost of interest ANSWER C
Date: September 3rd, 2020
QUESTION A balance sheet is helpful both on a business level and on a personal level. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION Financing for a period of one year or less is generally known as short-term financing. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION How does the Rule of 72 calculation work? A) Subtract the interest rate from 72. B) Divide 72 by the interest rate. C) Multiply the interest rate by 72. D) Add the interest rate to 72. ANSWER B
Date: September 3rd, 2020
