Financial Management Self-Assessment
Instructions: Write the letter of the answer that best fits in the box at right.	Answer
1. Which of these is the best indicator of the financial health of a product line? a. Sales $, b. Gross Profit $, c. Gross Profit %, d. Net Profit $, e. Net Profit %
2. Which of these is the best indicator of the success of a sales campaign? a. Sales $ vs. Budget, b. Gross Profit $ vs. Budget, c. Net Profit $ vs. Budget, d. Net Profit % vs. Budget, e. Sales Commission $ vs. Budget
3. Which of these is the best indicator of the overall health of a heavy equipment manufacturing company? a. Sales $, b. Gross Profit $, c. Operating Profit $, d. Net Profit $, e. Return on Assets
4. The cost of materials needed to fulfill customer demand is considered: a. Variable Cost, b. Fixed Cost, c. Sunk Cost, d. Fixed Assets, e. Overhead
5. To find out how much cash is being paid monthly to service debt, which report is best? a. Profit & Loss, b. Balance Sheet, c. Chart of Accounts, d. Inventory List, e. None of these
6. Which of these is can be used as a tool to help decide if an investment is worthwhile? a. Balance Sheet, b. Statement of Cash Flows, c. Return on Investment, d. Chart of Accounts, e. Cash Flow Projection
7. Which of these indicates how much a company must pay in about a year’s time? a. Current Assets, b. Current Liabilities, c. Overhead, d. Other Expenses, e. Owners Equity
8. Which of these indicates how much a company will receive in about a year’s time? a. Current Assets, b. Current Liabilities, c. Overhead, d. Other Expenses, e. Owners Equity
9. What is the best way to understand the financial health of an ongoing project? a. Projected Gross Profit % vs. Actual Goss Profit %, b. Profit $, c. Billings, d. Cash Collected, e. Change Orders
10. To find out if sufficient cash is available for an upcoming expenditure, look at: a. Assets, b. Current Assets, c. Current Assets minus Current Liabilities, d. Cash Flow Projection, e. Budget
11. To figure breakeven sales volume, use: a. Sales, b. Gross Profit %, c. Overhead $, d. (a. and b.), e. (b. and c.)
12. To decide if money is being collected effectively, use: a. Sales, b. Accounts Receivable, c. Accounts Payable, d. (a. and b.), e. (b. and c.)