Finance questions

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Try these finance questions with answers as they are an important part of the finance course for non finance professionals.




Please attempt all finance questions, answers are at the end of each question.

Question 1
The Statement of ____ Flows is the third primary financial statement, the Income Statement and the Balance Sheet are the other two.


Question 2
To make the cash flow statement more useful it separates cash flows into three categories:

1. ________ ____________
2. ________ ____________
3. ________ ____________


Question 3
By operating activities we mean what the company does every day in the normal running of the business. The company buys inventory and sells it – cash flows in and flows out. Paying wages, paying utility bills and advertising are all ___________ activities.

Question 4
Investing activities includes buying fixed assets such as plant and machinery, land and buildings. These are investments that will increase the productive capacity of the business. ________ activities do not happen everyday unlike operating activities. We don’t open a new factory everyday.

Question 5
__________ activities involves how much money the company has borrowed or repaid, has it paid any dividends to shareholders and has it issued any shares to raise capital for new projects.

In the table below are the cash flows of three major companies:

  1. Exxon Mobile
  2. Wal-Mart
  3. Coca-Cola
CASH FLOW
In  Billions Operating Investing Financing
Exxon Mobile 45.1 -27.0 -17.9
Wal-mart 23.3 -12.3 -11.0
Coca-Cola 10.6 -7.5 -3.6

Question 6
How much is Exxon’s spending on investing activities?


Question 7
Look at Coca- cola’s and Walmart’s cash flow.You can see both companies generate huge amounts of cash, they are called ____ ____ because they keep producing cash like a cow keeps on producing milk.

Finance Question 8
The Statement of Cash Flows, Income Statement and Balance sheet may not tell you everything about a company, they wont tell you if industrial relations are bad and that a strike is pending – but they are a pretty good starting point if you wish to ______ a company.



This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

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