Quiz Detail

Q1 . When might it be useful to look at non-GAAP financial reporting?

A When you want to find a really good bottle of wine

B When a company has an unusual, one-time expense and you want to understand the overall health of the company over time

C Before an audit

D It’s not useful. It’s mainly a way for companies to make their financial results look better than they are

Q2 . What does the income statement show? (chapter 1)

A How much cash was used for the stock repurchase program.

B The ROI on Mike Hack's robot suits.

C Revenues, expenses, and profits for a period of time.

D Revenues, expenses, and profits since the company was founded.

Q3 . What is an example of a capital expense? (chapter 1)

A Bob's donuts

B Monthly rent for an offshore data center

C Large purchase of equipment for an offshore data center

D Salaries for c-level executives

Q4 . What are the two ways in which InsideView positively affects a customer's income statement?

A Increased sales and decreased gross margin

B Decreased selling expenses and decreased gross margin

C Increased sales revenue and decreased selling expenses

D Increased length of happy hour and decreased wine consumption

Q5 . Which is NOT found on the income statement?

A Revenues

B Net profit

C Sales, administrative, and general expenses

D Capital expenditures

Q6 . Which question would you ask to determine whether an expense is a Cost of Sale or Operating Expense?

A Is the expense spread out over time?

B Is this expense silly?

C Does the expense directly relate to manufacturing or selling the product or service?

D Does the expense belong on the Cash Flow Statement

Q7 . What are "pro-forma" results?

A Consolidated financial results for all units of a business

B An estimate of financial results for a future time period

C The latest diet fad

D Another term for non-GAAP results

Q8 . When is revenue recognized?

A When the accounting books are “closed” for the time period

B Each and every Friday!

C When the invoice is paid

D When the related product or service is delivered to the customer

Q9 . Which best describes the "art" of finance and accounting? (chapter 1)

A Using limited data to come as close as possible to an accurate description of how well a company is performing

B Using limited data to provide the best looking snapshot of how a company is performing

C Exposing every detail of how a company runs its business

D Putting lipstick on a pig

Q10 . Which is the most direct measure of how efficiently a management team is running a company?

A Gross margin

B Operating margin

C Net margin

D Margarine

Q11 . Using the information found below, calculate the gross profit margin: - Revenue = $100 - Cost of Goods Sold (COGS) = $20 - Taxes = $5

A 80%

B 20%

C 75%

D 85%

Q12 . What does "above the line" mean? (chapter 8)

A Anything above net profit on an income statement

B Anything above EBIT on an income statement

C The title of the new Leonardo DiCaprio movie

D Anything above gross profit on an income statement

Q13 . When is revenue booked?

A When Umberto says so.

B When a customer signs an order form (contract)

C When product or services are delivered to the customer

D At the point of invoice.

Q14 . What is an example of Cost of Goods Sold (COGS)? (chapter 1)

A Cost to host our software with Amazon Web Services (AWS)

B Rob Asscherick's new carbon fiber bike wheels

C CSM salaries

D Sales commissions

Q15 . Using the information found below, calculate the net profit margin: - Sales = $200 - Cost of Sales = $125 - Taxes = $5 - Operating Expenses = $50

A 10%