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SPMA 2P27 Mid-Term Exam Questions And
Answers 100% Pass
Define Accounting with the 4 type of sheets we are looking at during this class? -
ANS Financial accounting is the recording and communication of economic information in
accordance with Generally Accepted Accounting Principles (GAAP).
1. Income Sheet
2. Balance Sheet
3. Cash Flow Statement
4. Profit & Loss Statement
Define Financial Planning - ANS Examining future income and expenses to help steer a
company in a given direction
What are the 5 forces in a Porter's analysis? - ANS 1. Threat of new entrants
2. Bargaining power of buyers
3. Threat of substitute products or services
4. Bargaining power of suppliers
5. Rivalry among existing competitors
What is the formula for Profit? - ANS Profit = Revenue - Expenses
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What is the TBL Theory (Triple Bottom Line)? - ANS Profit, People, Plant
What happened to PlayersParadise? - ANS They rooted on borrowed land and it got sold to a
weed company for greenhouse space.
Define Finance - ANS The "science of the management of money and other assets."
Define Financial Management - ANS "Conducting all financial matters of the organization in
way that ensures that funds are used in a proper and efficient manner."
-Proper - "of the required type; suitable or appropriate"
- Efficient - "acieving maximum productivity with minimum wasted effort or expense"
What is Financial Efficiency? - ANS Getting more output from the same resources or getting
the same output from fewer resources.
What use financial reporting and accounting and who is it for? - ANS Used to provide the
most useful financial information for decision-making (strategy) and it's for Executive staff,
Board of directors, managers, and more.
Is managerial effectiveness is revealed in the ability to make sound decisions? - ANS Yes.
What are some Key Concepts of Financial Accounting? - ANS - "Outside" Accounting
- Statement of "facts" (historical)
- For tax filing/lender reporting
- Set periods - quarterly, bi-annual, annually
SPMA 2P27 Mid-Term Exam Questions And
Answers 100% Pass
Define Accounting with the 4 type of sheets we are looking at during this class? -
ANS Financial accounting is the recording and communication of economic information in
accordance with Generally Accepted Accounting Principles (GAAP).
1. Income Sheet
2. Balance Sheet
3. Cash Flow Statement
4. Profit & Loss Statement
Define Financial Planning - ANS Examining future income and expenses to help steer a
company in a given direction
What are the 5 forces in a Porter's analysis? - ANS 1. Threat of new entrants
2. Bargaining power of buyers
3. Threat of substitute products or services
4. Bargaining power of suppliers
5. Rivalry among existing competitors
What is the formula for Profit? - ANS Profit = Revenue - Expenses
, ©EVERLY 2025 ALL RIGHTS RESERVED
What is the TBL Theory (Triple Bottom Line)? - ANS Profit, People, Plant
What happened to PlayersParadise? - ANS They rooted on borrowed land and it got sold to a
weed company for greenhouse space.
Define Finance - ANS The "science of the management of money and other assets."
Define Financial Management - ANS "Conducting all financial matters of the organization in
way that ensures that funds are used in a proper and efficient manner."
-Proper - "of the required type; suitable or appropriate"
- Efficient - "acieving maximum productivity with minimum wasted effort or expense"
What is Financial Efficiency? - ANS Getting more output from the same resources or getting
the same output from fewer resources.
What use financial reporting and accounting and who is it for? - ANS Used to provide the
most useful financial information for decision-making (strategy) and it's for Executive staff,
Board of directors, managers, and more.
Is managerial effectiveness is revealed in the ability to make sound decisions? - ANS Yes.
What are some Key Concepts of Financial Accounting? - ANS - "Outside" Accounting
- Statement of "facts" (historical)
- For tax filing/lender reporting
- Set periods - quarterly, bi-annual, annually
