Test Your Finance Knowledge!

Attempt the questions and scroll down to click the Submit button for results.


Select whether the given statement is true or false by clicking the radio button.

Capital, in the financial sense, is the money which gives the business the power to buy goods to be used in the production of other goods or the offering of a service.



Answer the question by clicking the appropriate radio button.

Which term is used for "Money which is used to purchase assets that will remain permanently in the business and help it to make a profit"?

Fixed Capital
Working Capital
Capital Budget
Cash Budget


Type the correct answer for the given question.

The method of Depreciation for Intangible Assets is known as…………..


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What does Ploughing back of profit mean?

Earning Illegal Money
Re-investment of Earnings
Unclaimed Dividend
Unrecorded Profit


Match the pairs by clicking an item on the left and then clicking an item on the right.

Match the following:

Acid Test
Cost of Sales
Current Ratio
Net Present Value
Opening Stock + Purchases - Closing Stock
Measurement of future Cashflow
Relationship between Current Assets and Current Liabilities
Ability to pay Short Term Debts


Type the answers in the spaces provided below the question.

Liquidity Ratios measure the availability of cash to pay debt. Mention the most common example Liquidity Ratios:


Sequence the items by clicking and dragging them to positions above or below another item.

Sequence the steps to create a P&L statement

Net Sales
Gross Margin - Selling and Administrative Expenses
Net Operating Profit + (Other Income - Other Expenses)
Net Profit Before taxes - Income Tax