FINANCEEVENTS copyToday, deviating from our routine post, we are trying to bring to you all an amazing quiz on finance. Let`s be fair to ourselves and give a challenge to our learning till date. So, here comes the show:

  1. This is a stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
  2. This phrase is Latin for “according to value”. It is a tax based on the assessed value of real estate or personal property.
  3. An interest rate swaps whose notional value adjusts according to rising interest rates by indexing the floating portion to a Constant Maturity Swap (CMS).
  4. In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner’s profit, leaving him or her with negative cash flow.
  5. A sheet of paper attached to a bill of exchange for the purpose of documenting endorsements.
  6. An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource.
  7. The the two companies whose CEO’s have resigned on account of huge losses suffered by the companies due to sub-prime crisis in USA.
  8. In the world of jargon, what is this: ” The effect of complex and extensive accounting rules that regulate financial statement reporting and are thought to distort a company’s true operating performance”.
  9. “If you can’t beat them, don’t join them, rather make them irrelevant.” This is the essence of which business strategy?
  10. What is the claim to fame of a product named ‘Epsom Salt‘?

So, how many “Thumbs Up”  for you?????? I am sure none of us have cracked 100% . Dont you worry! We are still in learning phase and these sort of challenges are healthy to test our knowledge occasionally. Here comes the answer to all those questions:

ANSWERS:  1) Acid test ratio, 2) Ad valorem tax, 3) Air bag swap, 4) Alligator Property, 5) Allonge, 6) Agflation, 7) Merrill lynch CEO Stanley O’Neal ,Citigroup CEO Charles Prince, 8) Accounting noise, 9) Blue Ocean Strategy, 10) World’s first patented product.

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