Finance for Non-Finance Managers Sample Exam Questions

Ques: Which of the following is NOT a characteristic of financial accounting systems?

• a) Investors often use them to decide their investments.
• b) Cost accounting is another name used for them.Correct Answer
• c) They serve two purposes: bookkeeping and analysis of financial transactions.
• d) Market regulators may use them to ensure compliance.

Ques: Rocky Mountain Housing Inc. pays its employees once a month. If we prepare a balance sheet in the middle of the month, then how this unpaid salary will be reflected in it?

• a) It will not be reflected as it is yet to be paid.
• b) It will reflect in the current assets as it is to be paid in short term.
• c) It will reflect in the current liabilities as it is to be paid in the short term.Correct Answer
• d) It will reflect in the accounts payable.

Ques: Which of the following is the correct accounting equation?

• a) Assets = Liabilities + Paid-in Capital + (Revenue - Expenses) - Dividends Correct Answer
• b) Assets = Liabilities + Paid-in Capital + (Revenue - Expenses)
• c) Assets = Liabilities + Paid-in Capital - Dividends
• d) Assets = Liabilities + Paid-in Capital + (Revenue - Expenses)

Ques: For a steady-state company, the cash flow pattern would generally be which of the following?

• a) Positive Operating, Negative Investing, and Financing Correct Answer
• b) Positive Financing, Negative Operating, and Investing
• c) Positive Operating, Investing, and Financing
• d) Positive Investing, Negative Operating, and Financing

Ques: What is the significance of cash flow ratios?

• a) They tell us about the company's profitability.
• b) They tell us how well the company is using its cash reserves.
• c) They tell us about the company's ability to leverage.
• d) They inform us about the health of the company's cash flows.Correct Answer

Ques: Which of the following statements is correct?

• a) Debt is costlier than equity as there is risk of bankruptcy.
• b) Equity is costlier than debt as equity returns are tax exempt.
• c) Debt is cheaper than equity as interest payments are tax exempt.Correct Answer
• d) Equity is cheaper than debt as returns to stockholders is not constant.

Ques: Which of these is NOT required to calculate NPV?

• a) Cost of Capital
• b) Cash flows
• c) Initial investment
• d) Payback period Correct Answer

What is the exam like?

The final exam is fully based upon the Finance for Non-Finance Managers Courseware that is provided as part of the Finance for Non-Finance Managers Certification. If you go through the courseware properly, you should not have a problem clearing the exam. The exam consists of multiple-choice questions from different chapters of the Finance for Non-Finance Managers Courseware.

How do I get certified?

The process of getting yourself certified is very simple. All you have to do is buy the ExpertRating Finance for Non-Finance Managers Course for $69.99. Log in to your ExpertRating account using your password. Go through the Finance for Non-Finance Managers Courseware, which could take from one week to one month - depending upon how hard you work and your level of experience - and take the certification exam at your convenience. You can take the exam within one year of buying the certification. The result of the exam appears as soon as it is completed, and your certificate is mailed immediately.

What learning aids will I get?

The ExpertRating online Finance for Non-Finance Managers Courseware includes the following learning aid:
24 x 7 access to the ExpertRating online Finance for Non-Finance Managers Courseware.

What are the course start dates?

You can access the ExpertRating online Finance for Non-Finance Managers Courseware as soon as your payment is processed successfully, and you can complete your Finance for Non-Finance Managers Certification within one year of enrollment.

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The $69.99 is all-inclusive. Here is what you get:

• The in-depth ExpertRating Online Finance for Non-Finance Managers Courseware
• The final test fee
• The hard copy certificate
• Shipping charges of the hard copy certificate
• An online transcript that can be used to prove your certified credentials on the internet at any time
• A downloadable copy of your original certificate available as soon as you pass