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MBA Finance Corporate Finance — practice questions

Explore 29 free Corporate Finance questions in MBA Finance Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Corporate Finance questions and exercises with answers

Showing questions 1–29 of 29.

A clerk records each day's sales and payments in a routine ledger. That routine work is:Read the answer and worked solution →The three main accounting elements were defined in the late 15th century by:Read the answer and worked solution →Cash, equipment and buildings a firm owns are its:Read the answer and worked solution →What a firm owes to its creditors is recorded as its:Read the answer and worked solution →Total investment in a firm minus its liabilities is called owners' equity, also known as:Read the answer and worked solution →You open a shop with 10,000 in cash and no debt. Owners' equity at that moment is:Read the answer and worked solution →You then borrow 10,000 from a bank. Your total assets become:Read the answer and worked solution →That bank loan is entered as a liability of 10,000, keeping the equation balanced. This method is called:Read the answer and worked solution →The process running from a business transaction through to the finished report is the accounting:Read the answer and worked solution →Assets a firm can turn into cash quickly are classed as:Read the answer and worked solution →Machinery a bakery uses in production for more than a year is recorded under:Read the answer and worked solution →A patent or copyright a firm owns is recorded as an:Read the answer and worked solution →Debts a firm must pay within a year of the balance sheet date are:Read the answer and worked solution →Profits kept in the business since it started, rather than paid out, are called:Read the answer and worked solution →The total expense of buying or producing what a firm sells is the:Read the answer and worked solution →Net sales minus the cost of goods sold gives:Read the answer and worked solution →Salaries and commissions paid to salespeople and the cost of advertising fall under:Read the answer and worked solution →Cash a firm generates from producing and selling its goods appears under cash flow from:Read the answer and worked solution →Cash movements tied to debt and equity funding appear under cash flow from:Read the answer and worked solution →A lender divides a firm's current assets by its current liabilities. That measure is the:Read the answer and worked solution →Net profit divided by net sales gives the net profit margin, also called:Read the answer and worked solution →Catch the assetsRead the answer and worked solution →Pop the statementsRead the answer and worked solution →Run the accounting gatesRead the answer and worked solution →Slice the accounting wordsRead the answer and worked solution →Asset or liabilityRead the answer and worked solution →Sort the cash flowsRead the answer and worked solution →Type the numberRead the answer and worked solution →Accounting bingoRead the answer and worked solution →

Worked practice questions

A clerk records each day's sales and payments in a routine ledger. That routine work is:

  1. Bookkeeping
  2. Bookbinding
  3. Bookmarking
  4. Bookselling
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Correct answer: A. Bookkeeping

1. No analysis or planning is happening. 2. Transactions are simply recorded. 3. This is bookkeeping. _Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._

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The three main accounting elements were defined in the late 15th century by:

  1. Luca Marconi
  2. Luca Pacioli
  3. Luca Ricardo
  4. Luca Bernoulli
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Correct answer: B. Luca Pacioli

1. He was an Italian monk. 2. He named assets, liabilities and owners' equity. 3. He was Brother Luca Pacioli. _Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._

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Cash, equipment and buildings a firm owns are its:

  1. Assets
  2. Losses
  3. Wages
  4. Taxes
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Correct answer: A. Assets

1. They are things of value the firm holds. 2. Some are tangible, some intangible. 3. They are assets. _Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._

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