All Weeks Finance for Non-Financial Professionals Coursera Quiz Answers
Table of Contents
Finance for Non-Financial Professionals Week 1 Quiz Answers
Quiz 1: Module 1 Quiz
Q1. Which of the following is referred to as the Accounting Equation?
- Assets = Liabilities + Equity
- Equity = Liabilities + Assets
- Liabilities = Assets + Equity
- Assets = Liabilities – Equity
Q2. Which of the following make up the Finance Equation? (select all that apply)
- Revenues = Price x Volume
- Costs = Fixed + Variable
- Profit = Revenues – Costs
- Income = Sales – COGS
Q3. Which of the following are referred to as the building blocks of accounting? (select all that apply)
- Assets
- Debits
- Credits
- Liabilities
- Equity
Q4. Which of the following is NOT one of the four Financial Statements?
- Income Statement
- Balance Sheet
- Statement of Accounts
- Statement of Cash Flows
- Shareholder’s Equity
Q5. Generally Accepted Accounting Principles or GAAP are:
- Accounting rules enforced by law
- Accounting principles and guidelines
- Enforced by law in some countries but not in others
- The only way to be sure your books are correct
Q6. The balance sheet is the representation of what?
- the accounting equation
- company profits
- shareholder’s equity
- company’s cash flow
Q7. Consider this example. Soriyah is an entrepreneur who has just established her own company selling imported Persian rugs. She names her business Rugs of the World and invests $325,000 in the company in exchange for all of its newly issued shares.
Which of the following statements are true?
- Assets and equity are both recorded as $325,000
- Assets are recorded as $325,000
- Equity is recorded as $325,000
- Liabilities are recorded as $325,000
- All of the statements are true
Q8. In one of the videos, the instructor says that “in Accounting you can have minus $1,000,000, but in Finance you can’t.” This statement explains what?
- Accounting is theory but Finance is practice
- Finance looks at financial performance whereas Accounting records the transactions
- Balance sheets can be deceptive
- Most income statements are only approximations
Q9. Which of these is a snapshot of a company’s finances at a particular point in time?
- Balance sheet
- Income statement
- Statement of shareholders’ equity
- GAAP
Finance for Non-Financial Professionals Week 2 Quiz Answers
Quiz 1: Module 2 Quiz
Q1. What is most commonly used when large batches of nearly identical items are being produced?
- Process Costing
- Standard Costing
- Job Order Costing
- Batch Costing
Q2. What uses direct costs and ALL overhead costs?
- Standard Costing
- Absorption Costing
- Full Costing
- Direct + Costing
Q3. To calculate break-even you need the following: (select all that apply)
- Fixed Costs
- Variable Costs
- Price Per Unit
- Inflation rate
- Cash flow
Q4. When a business is going well and running near capacity, full costing should be used and products should be priced at or below their full cost.
- True
- False
Q5. Understanding costing (and pricing) options allows us to better respond to the demands of our sector.
- True
- False
Q6. Which of these cost methods does the instructor suggest a pizza business might use, given the variability of the cost of cheese?
- Standard costing
- Job order costing
- Direct costing
- Unit costing
Q7. In this cost allocation method, the pizza business owner will include the cost of the ingredients of the pizza, but will not include things like rent and salaries.
- Direct costing
- Absorption costing
- Full costing
- Average costing
Q8. Todd owns a small factory that makes basketballs for professional teams. He likely uses what method for assigning costs?
- Process costing, since his products are nearly identical
- Standard costing, due to large variances in his production
- Job order costing, since the number of basketballs produced varies from month to month
Q9. In calculating a break-even analysis, you must take into account what pieces of information? (Select all that apply)
- Fixed costs
- Variable costs
- Discounted costs
- Marginal costs
- Opportunity costs
Finance for Non-Financial Professionals Week 3 Quiz Answers
Quiz 1: Module 3 Quiz
Q1. _____________________ ratios help us understand a company’s ability to turn short-term assets into cash.
- Liquidity
- Asset Turnover
- Profitability
- Debt
Q2. _____________________ ratios help us understand a company’s debt load as well as its mix of equity and debt.
- Liquidity
- Asset Turnover
- Profitability
- Debt
Q3. _____________________ ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings.
- Liquidity
- Asset Turnover
- Profitability
- Debt
Q4. _____________________ ratios are a class of financial metrics that is used to measure the turnover of assets.
- Liquidity
- Asset Turnover
- Profitability
- Debt Ratios
Q5. According to the DuPont Pyramid, operating efficiency is:
- measured by profit margin
- measured by total asset turnover
- measured by the equity multiplier
Q6. According to the DuPont Pyramid, asset use efficiency is:
- measured by profit margin
- measured by total asset turnover
- measured by the equity multiplier
Q7. According to the DuPont Pyramid, financial leverage is:
- measured by profit margin
- measured by total asset turnover
- measured by the equity multiplier
Q8. The Quick Ratio is known as the “acid test” of ratios because it’s a quick way of finding out whether a company has enough assets to cover its liabilities.
- True
- False
Q9. The Quick Ratio does not include a company’s inventory because companies can’t always convert their inventory into a liquid asset in order to pay their bills.
- True
- False
Q10. The earnings per share (EPS) ratio:
- tells you how much the market is willing to pay for each dollar of profit in a company
- tells you how much a company is leveraged
- indicates a company’s profitability
- tells you the profit per sales dollar
Q11. The price earnings (P/E) ratio:
- tells you how much the market is willing to pay for each dollar of profit in a company
- tells you how much a company is leveraged
- indicates a company’s projected profitability
- tells you the profit per sales dollar
Finance for Non-Financial Professionals Week 4 Quiz Answers
Quiz 1: Module 4 Quiz
Q1. Which is the simplest form of company valuation?
- Market Valuation
- Multiples Method
- Discounted Cash Flow (DCF) Analysis
- Comparison Method
Q2. To use the Market Valuation method, you need the company’s stock price and the number of:
- Employees
- Outstanding Shares
- Issued Shares
- Dividends Paid
Q3. Using a set of common metrics to valuate a company based on other companies in the same sector is better known as:
- Market Valuation
- Multiples Method
- Discounted Cash Flow (DCF) Analysis
- Comparison Method
Q4. The Discounted Cash Flow method uses a company’s free cash flows and a discount rate to calculate the:
- Internal Rate of Return (IRR)
- Net Present Value (NPV)
- Cost of Goods Sold (GOGS)
- DuPont Pyramid
Q5. The _______________________ is the yield of an investment expressed as a percentage.
- Internal Rate of Return (IRR)
- Net Present Value (NPV)
- Cost of Goods Sold (GOGS)
- DuPont Pyramid
Q6. The IRR of a venture is the rate of return at which the NPV = 0.
- True
- False
Q7. Valuation answers the “What is a company worth?”
- True
- False
Q8. Which of the three valuation methods discussed is driven by traders and can suffer from a “herd mentality”?
- Market valuation
- Multiples method
- Discounted cash flow (DCF) analysis
Q9. Because the Multiples method of valuation compares companies that are in the same sector, you should choose 15 or 20 companies to examine.
- True
- False
Q10. The premise behind Net Present Value is:
- Money today is worth more than money a year from now.
- A company may shrink or expand in the future
- What investors do today may not predict what they’ll do a year from now
- Investors are fickle and may sell their stocks on a whim
