Are You Smarter Than a 5 th Grader? Topic 2 Financial Planning & Management

Are You Smarter Than a 5 th Grader? 1,000,000 5th Grade Topic 1 5th Grade Topic 2 4th Grade Topic 3 4th Grade Topic 4 3rd Grade Topic 5 3rd Grade Topic 6 2nd Grade Topic 7 2nd Grade Topic 8 1st Grade Topic 9 1st Grade Topic 10 500,000 300,000 175,000 100,000 50,000 25,000 10,000 5,000 2,000 1,000

5th Grade Topic 1 Question The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year. Which objective is the financial manager aiming to improve? (A) Efficiency (B) Liquidity (C) Profitability (D) Solvency

The financial manager of a furniture company has determined that improving turnover of accounts receivable will be the goal for the next financial year.

Which objective is the financial manager aiming to improve?

(A) Efficiency

(B) Liquidity

(C) Profitability

(D) Solvency

5th Grade Topic 1 Answer (A) Efficiency Return

(A) Efficiency

5th Grade Topic 2 Question What is the main role of the Australian Stock Exchange? (A) Conducting a public market in shares and debentures (B) Buying and selling securities in Australian businesses (C) Providing prudential supervision of financial institutions (D) Ensuring investors create economic growth and employment prospects

What is the main role of the Australian Stock Exchange?

(A) Conducting a public market in shares and debentures

(B) Buying and selling securities in Australian businesses

(C) Providing prudential supervision of financial institutions

(D) Ensuring investors create economic growth and employment prospects

5th Grade Topic 2 Answer (A) Conducting a public market in shares and debentures Return

(A) Conducting a public market in shares and debentures

4th Grade Topic 3 Question Which of the following is an advantage of using owner’s equity as a source of funds? (A) The owner’s unproductive assets are liquidated. (B) There is no change of ownership as funding is internal. (C) The business can make tax savings in periods of high inflation. (D) The business is able to sustain prolonged periods of operating losses.

Which of the following is an advantage of using owner’s equity as a source of funds?

(A) The owner’s unproductive assets are liquidated.

(B) There is no change of ownership as funding is internal.

(C) The business can make tax savings in periods of high inflation.

(D) The business is able to sustain prolonged periods of operating losses.

4th Grade Topic 3 Answer (C) The business can make tax savings in periods of high inflation. Return

(C) The business can make tax savings in periods of high inflation.

4th Grade Topic 4 Question What is the best measure of the current financial position of a business? A) A SWOT report B) A cash flow statement C) A budget D) A balance sheet

What is the best measure of the current financial position of a business?

A) A SWOT report

B) A cash flow statement

C) A budget

D) A balance sheet

4th Grade Topic 4 Answer Return A balance sheet

A balance sheet

3rd Grade Topic 5 Question Which of the following statements about budgets is correct? Budgets are: A)A problem solving tool B)A monitoring tool C)A planning tool and a problem solving tool D)A planning tool and a monitoring tool

Which of the following statements about budgets is correct? Budgets are:

A)A problem solving tool

B)A monitoring tool

C)A planning tool and a problem solving tool

D)A planning tool and a monitoring tool

3rd Grade Topic 5 Answer A planning tool and a monitoring tool Return

A planning tool and a monitoring tool

3rd Grade Topic 6 Question Institutions participating in the equity market will most likely include: A)Banks and building societies B)Credit unions and finance companies C)Stockbrokers and the Australian Stock Exchange D)Banks and stockbrokers

Institutions participating in the equity market will most likely include:

A)Banks and building societies

B)Credit unions and finance companies

C)Stockbrokers and the Australian Stock Exchange

D)Banks and stockbrokers

3rd Grade Topic 6 Answer Stockbrokers and the Australian Stock Exchange

Stockbrokers and the Australian Stock Exchange

2nd Grade Topic 7 Question Which of the following are funds derived from internal sources A) Venture capital and retained profits B) Overdraft and bank bills C) Shares, capital and overdrafts D) Retained profits and share capital

Which of the following are funds derived from internal sources

A) Venture capital and retained profits

B) Overdraft and bank bills

C) Shares, capital and overdrafts

D) Retained profits and share capital

2nd Grade Topic 7 Answer Return Retained profits and share capital

Retained profits and share capital

2nd Grade Topic 8 Question What is involved in factoring? A) The immediate payment of creditors at a discount B) The selling of equipment then leasing it back C) The sale of accounts receivable for less that full value D) The use of debt finance in preference to equity finance

What is involved in factoring?

A) The immediate payment of creditors at a discount

B) The selling of equipment then leasing it back

C) The sale of accounts receivable for less that full value

D) The use of debt finance in preference to equity finance

2nd Grade Topic 8 Answer Return The sale of accounts receivable for less that full value

The sale of accounts receivable for less that full value

1st Grade Topic 9 Question Which of the following best represents the financial planning cycle? (A) Retain profits, acquire equity finance, minimise risks, plan the marketing strategy (B) Address the present financial position, source funds, analyse reports, establish a cost centre (C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls (D) Conduct a situational analysis, lead structural change, maintain record systems, develop budgets and cash flows

Which of the following best represents the financial planning cycle?

(A) Retain profits, acquire equity finance, minimise risks, plan the marketing strategy

(B) Address the present financial position, source funds, analyse reports, establish a cost centre

(C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls

(D) Conduct a situational analysis, lead structural change, maintain record systems, develop budgets and cash flows

1st Grade Topic 9 Answer (C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls Return

(C) Address the present financial position, prepare budgets, analyse financial reports, plan financial controls

1st Grade Topic 10 Question A business sells its accounts receivable to improve cash flow. Which of the following best describes this strategy? (A) Factoring (B) Equity financing (C) Sale and lease back (D) Accounts receivable turnover

A business sells its accounts receivable to improve cash flow.

Which of the following best describes this strategy?

(A) Factoring

(B) Equity financing

(C) Sale and lease back

(D) Accounts receivable turnover

1st Grade Topic 10 Answer (A) Factoring Return

(A) Factoring

Million Dollar Question Grade Level Topic 11

1,000,000 Question Which of the following would best describe the role of a merchant bank? A) To monitor the activities of publicly listed companies B) To act as banker and financial agent to the federal government C) To provide borrowing and lending services, primarily to the business sector D) To provide loans to the corporate sector through receipts of insurance premiums

Which of the following would best describe the role of a merchant bank?

A) To monitor the activities of publicly listed companies

B) To act as banker and financial agent to the federal government

C) To provide borrowing and lending services, primarily to the business sector

D) To provide loans to the corporate sector through receipts of insurance premiums

1,000,000 Answer To provide borrowing and lending services, primarily to the business sector Return

To provide borrowing and lending services, primarily to the business sector

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