Finance 2

Question 1

Treasurer

Answer 1

The Director of Treasury oversees the organization’s cash management strategies, including capital raising, risk management, and liquidity. They ensure the company has the capital needed for its operations and investments, while also managing relationships with financial institutions.

Question 2

principle of least authority

Answer 2

It’s based on the idea that users and applications should only have access to the data and operations they need to perform their jobs

Question 3

Call Market

Answer 3

A call auction, or call market, is where market participants place orders to buy or sell at certain bid or offered (ask) prices, which are then batched together and matched at predetermined time intervals.

Question 4

Cash Flow Budget

Answer 4

A cash flow budget estimates your business’s cash flow over a specific time period. You can use the information to see if you have enough cash coming in to maintain regular operations over the given time frame.

Question 5

Audit Trail

Answer 5

An audit trail is a series of records of computer events, about an operating system, an application, or user activities.

Question 6

Brokerage Firm

Answer 6

a financial institution that acts as a middleman to connect buyers and sellers of financial instruments. These instruments can include stocks, bonds, options, commodities, and derivatives

Question 7

Installment Credit

Answer 7

Installment credit is a type of loan where a borrower receives a set amount of money and pays it back in fixed amounts over a set period of time

Question 8

Double taxation

Answer 8

When Income tax is paid twice on the same source

Question 9

Income Statement

Answer 9

An income statement shows a business’s revenue, expenses, gains, and losses, starting with revenue and ending with net income

Question 10

Balance Sheet

Answer 10

a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time.

Question 11

Unrated investment

Answer 11

a debt security or investment that is not publicly rated by S&P, Xxxxx’x or another nationally-recognized statistical rating organization.

Question 12

Debt Instrument

Answer 12

a tool an entity can use to raise capital

Question 13

Internal Control mechanisms

Answer 13

the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Question 14

Hedge Fund

Answer 14

pool investors’ money and invest the money in an effort to make a positive return.

Question 15

Data normalization

Answer 15

a process that organizes data in a database to make it more consistent, accurate, and easier to work with

Question 16

Benford’s law

Answer 16

the observation that in many real-world data sets, the leading digit is more likely to be small

Question 17

three economic indicators that stock market investors and traders should pay the closest attention to

Answer 17

GDP, unemployment, inflation

Question 18

Profitability Analytics

Answer 18

a process that examines an organization’s revenue streams to determine how it generates profit.