This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.
If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

Finance Test Questions
1. The concept of present value relates to the idea that*
The discount rate is always higher when you invest now than in the future
The discount rate is always higher when you invest in the future than now
The money you have now is worth less today than an identical amount you would receive in the future
The money you have now is worth more today than an identical amount you would receive in the future
2. The formula for calculating future value (FV) is*
FV = PV/(1+r)^n
FV = PV/(1+r)*n
FV = PV x (1+r)^n
FV = PV x (1+r)*n
Answer:
option A
Explanation:
Human resource administration refers to the the systematic approach to managing people effectively within a company or industry so they can help their business gain an edge. It is intended to increase the efficiency of workers in relation to the strategic goals of an enterprise.
HR practitioners monitor an organisation's human resources, and concentrate on strategies and procedures being implemented. Such managers specialize in discovering, hiring, education and workforce growth as well as retaining employee relationships or rewards. Specialists in skills training assure that workers are educated and also have sustained growth.
Answer:
The correct answr is C.
Explanation:
Giving the following information:
Cost Machine Hours
January $52,200 20,000
February 75,000 29,000
March 57,000 22,000
April 64,000 24,500
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)
Variable cost per unit= (75,000 - 52,200) / (29,000 - 20,000)= 2.53
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 75,000 - (2.53*29,000)= 1600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 52,200 - (2.53*20,000)= 1600
Answer:
The incremental cost is $198,000
Explanation:
Given;
Current cost per unit to manufacture = 66,000 units
Direct materials = $5.00
Direct labor= $9.00
Overhead = $10.00
Total cost per unit = $24.00
Incremental costs = $1,254,000 - $1,056,000 = $198,000
Answer:
Bad debts expenses Debit $ 11,750
Allowance for uncollectible receivables Credit $ 11,750
Explanation:
The allowance for uncollectible accounts receivables balances are calculated as a percentage of the receivable balance.
The receivable balances as at December 31, 2018 is
Services provided on account $ 154,000
Cash collections received <u>$ 107,000</u>
Receivables from services uncollected <u>$ 47,000</u>
Estimated percentage considered uncollectible 25 %
Allowance for uncollectible accounts $ 47,000 * 25 % = $ 11,750