FREE CFO Investment Analysis Questions and Answers

Question 1

What is investment analysis?

Accepted Answer

Analyze investments for return and risk

Answer

Audit expense reports

Answer

File employee payroll

Answer

Develop HR policy

Question 2

What does ROI stand for?

Accepted Answer

Return on Investment

Answer

Rate of Increase

Answer

Ratio of Interest

Answer

Revenue on Insurance

Question 3

What is diversification in investing?

Accepted Answer

Spreading investments across assets

Answer

Investing in a single stock

Answer

Buying real estate only

Answer

Avoiding investments

Question 4

What is a common metric used to compare investment performance?

Accepted Answer

Net Present Value

Answer

Balance Sheet

Answer

Income Tax Rate

Answer

HR Scorecard

Question 5

What is the role of the CFO in investment decisions?

Accepted Answer

Evaluate financial and strategic fit

Answer

Approve based on popularity

Answer

Ignore risk levels

Answer

Rely solely on investor tips

Question 6

Which financial statement helps assess investment capacity?

Accepted Answer

Cash flow statement

Answer

Timesheet

Answer

Expense report

Answer

Meeting agenda

Question 7

Which term refers to the risk of losing part of the original investment?

Accepted Answer

Capital risk

Answer

Interest risk

Answer

Premium risk

Answer

Rate shift

Question 8

What is the benefit of using the payback period in analysis?

Accepted Answer

Determines breakeven timeline

Answer

Measures employee growth

Answer

Estimates equipment wear

Answer

Monitors internet use

Question 9

What does DCF stand for in investment analysis?

Accepted Answer

Discounted Cash Flow

Answer

Deferred Capital Fund

Answer

Direct Cost Factor

Answer

Departmental Cash Funding