Please score your answers to this Commercial Finance Quiz. Each answer is worth 5 points.
If you have them all correct, send me your answers and I’ll send you a free copy of my book, You’re the Buyer – You Negotiate It.
If you don’t know for sure if your answer is correct, it probably isn’t. For the ANSWER list, email RobertMenard@RobertMenard.com.
Commercial finance is a mystery to most purchasing and sales pros. Buyers must understand supplier finance and sellers must know more than can be gained from a basic business course for each to succeed.
After you complete this Quiz, if you want to address another deficiency for purchasing and sales pros, take the Purchasing Law Quiz.
1 From the data table below, calculate
- Current Ratio
- Working Capital
- Debt/Equity Ratio
|Total Current Assets||
|Total Current Liabilities||
|Share Holders Equity||
2 Which data value was not used for any of these calculations?
3 Which one of these is not a current asset?
- Accounts Receivable
- Plant and Equipment
- Stock certificates for publicly traded companies
4 When is inventory not a current asset?
5 An audited financial statement by an independent firm carries what type of opinion on financial condition.
6 What is or are GAAP
7 For accounting purposes, what is a 10k?
- An annual road race fund raiser
- An annual statement of financial condition from a publicly traded company
8 For a publicly traded company, what is an analyst call?
9 What is meant by accrual method of accounting?
10 Generally, is loan forgiveness taxable income? Yes or No
11 For Sarbanes Oxley purposes, why are open line items on a purchase order considered contingent liabilities?
- Debt that exceeds prescribed maximums
- Debt that falls below prescribed maximums
- Debt for which a lender stands behind superior claims
- Debt for which a lender stands ahead of superior claims
13 Which one of these is not found on the Balance Sheet?
- Long Term Liabilities
- Cost of Goods Sold
- Current Assets
- Shareholders Equity
14 Which one is not found on a Profit and Loss (Income) statement?
- Long Term Assets
- Net Profit/Loss
15 What is an S corporation?
16 Which of these is not a recognized method of Inventory valuation
- LIFO Last In First Out
- FISH First In Still Here
- FIFO First In First Out
17 Which of these is an asset
- Debenture indebtedness
- Billings in excess of costs
- Certificates of deposit
- Trade payables
18 Unsecured debt means
- The debtor is insecure
- The creditor is secure
- The debtor’s claim is subordinate to secured creditors
- The debtor’s claim is superior to secured creditors
19 Generally, lease payments are depreciable. True or False
20 Specify one major difference between a corporation and a partnership or proprietorship.
21 What is meant by cash method of accounting?
SCORING If you do not know for sure, give no credit
00 to 50 Wow, my bad
55 to 80 Needs work
85 to 115 Bravo!
If you do not know as much as you thought you should, you are in the majority! Education and training is not what it should be in the purchasing and sales profession.