Making financial decisions involves an assessment of the future. Nils Bohr, a Nobel Prize winning physicist, is reported to have said “Prediction is very difficult, especially if it’s about the future”. Part of prediction in the financial markets is quantitative, but as we all know judgement is also needed as world events do not always develop in a way that we can predict mathematically or statistically, unexpected risks can and do occur, technology is changing rapidly, and managers of businesses can take actions that were not foreseen .

However facts are needed to help us evaluate financial decisions, test knowledge, to measure financial risks and financial performance as an input in financial decision making.

As individuals, whether for ourselves or for the organisations that we work for, we need to assess whether we, or people that we might employ, have the technical knowledge needed for a specific job role.

This is why, as part of my training/coaching/mentoring, I offer testing facilities. I have recently added a facility for online testing…there is an automated marking system. An example can be accessed on  www.m-training.co.uk, in the training quizzes section (http://www.m-training.co.uk/training-quizzes/)

Is testing part of your or your organisation’s learning experience?

If you are

  • in the process of looking for a new job role, either with a new organisation or your existing employer
  • an employer wanting to assess the technical knowledge of your employees and /or new/potential hires
  • a recruitment agency or head hunter working in the financial services sector
  • an education provider that wants a facility to assess students’ understanding of a topic

 

or you simply want to test your knowledge

then perhaps testing is something that will be helpful to you and /or your business.

The sample test on the www.m-training web site will take time for you to complete. By all means try the test. If however you are just looking to get an idea of types of question formats below are a sample of questions to show you some question types.

  1. True or false

Pension assets for companies are always shown on a company’s balance sheet.

True

False

 

      2. Multiple choice, requiring a calculation

You buy €1 million with US$ at 1.14. The US$ subsequently appreciates to 1.05 at financial year end. The transaction does not qualify as a cash flow hedge. The gain/ loss in the income statement (produced in €) is closest to which of the following?

€90,000 gain

€90,000 loss

€85,000 gain

€85,000 loss

€80,000 gain

€80,000 loss

     3. Mix and match

The following are several items that appear in financial statements. Please indicate if they are Assets, Liabilities, Equity items, Profit and Loss account or off balance sheet items.

Assets Liabilities Equity items Profit and Loss account Off balance sheet items
Goodwill
Share premium account
Payables
Receivables
Cost of goods sold
Derivatives
Revaluation reserves
Short term securities
Guarantees given
Accumulated minority interests
Sales
Interest income

 

     4. With attachments such as Excel or Word files

 
Read this. On the assumption that the annual interest rate is 6%, would the example shown be a capital lease?

Doc: https://docs.google.com/document/d/1gtqmQhysrhcazsXAFeV5zQm66Z7ZYoKP4z6Po11nyLY

Yes

No

 

 
What next?

 

If you like what you see, I would be pleased to speak with you to discuss testing and how this fits in with your overall learning objectives.

 

The tests can be in either in a standard format or tailored to your specific needs and payment can be made in a combination of one off or continuing fees for testing or as part of overall training/ coaching/mentoring package.

 

I hope that we will have the opportunity to discuss the possibilities.

 

 

Malcolm Sullivan