PHR Certification with question and answers 2025
Accounts Payable - correct answerMoney an organization owes its vendors and suppliers.
Accounts Receivable - correct answerMoney an organization's customers owe the organization.
Action Plans - correct answerDetailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - correct answerModification or the Constitution or a law; modification may be
either formal (written) or informal (unwritten).
Assets - correct answerFinancial, physical, and sometiems intangible properties an organization
owns.
Balance Sheet - correct answerStatement of a firm's financial position at a particular time.
Balanced scorecard - correct answerMeasurement approach that provides an overall picture of
an organization's performance as measured against goals in finance, customers, internal
business processes, and learning and growth.
Bill - correct answerProposal presented to a legislative body for possible enactment as a law.
Break-even analysis - correct answerAnalysis that shows point in time at which total revenue
associated with a program is equal to the total cost of the program.
Business Case - correct answerDescription of an organizational challenge and possible
alternative solutions, arguing for specific solution.
,Capacity - correct answerTo an operations department, the ability to yield output.
Cash flow statement - correct answerRecord of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - correct answerDegree to which decision-making authority is restricted to higher
levels of management in an organization.
Code of ethics - correct answerPrinciples of conduct within an organization that guide decision
making and behavior.
Consumer price index - correct answerMeasure of the average change over time in the prices
paid by consumers for goods and services.
Control - correct answerTo an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - correct answerMeasure that indicates the relationship between two variables.
Cost-benefit analysis - correct answerRatio of value created to cost of creating that value; allows
management to determine the financial impact particular activities and programs have on an
organization's profitability.
Decentralization - correct answerDegree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - correct answerWay an organization groups jobs to coordinate work.
Divestiture - correct answerSale by a company of an asset that is not performing well, that is not
core to the company's business, or that is worth more as a separate entity.
,Divisional structure - correct answerOrganizational structure in which segments ae separated by
product, customer or market, or region.
Due diligence - correct answerProcess of conducting an intensive investigation of an
organization as one of the first steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA) - correct answerAct that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - correct answerIntegrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - correct answerProcess that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - correct answerAmount of owners' or shareholders' portion of a business.
Ethics - correct answerSystem of moral principles and values that establish appropriate conduct.
Extended organization - correct answerAlliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - correct answerCalculations designed to describe an organization's financial
health and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - correct answerProhibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - correct answerForm of budgeting in which an average cost is applied to
comparable expenses and general funding is changed by a specific amount.
, Functional structure - correct answerOrganizational structure that defines departments by what
services they contribute to the organization's overall mission.
Gantt chart - correct answerProject planning tool that graphically displays activities of a project
in sequential order and plots them against time.
Generation X - correct answerGroup of people born roughly between the years of 1965 - 1980
Generation Y - correct answerGroup of people born after 1980.
Gross domestic product (GDP) - correct answerEstimate of the total value of goods and services
produced in a country in a given year.
Gross profit margin - correct answerRatio of gross profit to net sales.
HR audit - correct answerProcess to measure the effectiveness and efficiency of HR programs
and positions.
Human capital - correct answerCombined knowledge, skills, and experience of a company's
employees.
Human resource information system (HRIS) - correct answerSystematic tool for gathering,
storing, maintaining, retrieving, and revising HR data.
Human resource management (HRM) - correct answerDesign of formal systems in an
organization that ensure the effective and efficient use of human capital to accomplish
organizational goals.
Income statement - correct answerStatement comparing revenues, expenses, and profits over a
specified period of time, usually a year or a quarter.
Accounts Payable - correct answerMoney an organization owes its vendors and suppliers.
Accounts Receivable - correct answerMoney an organization's customers owe the organization.
Action Plans - correct answerDetailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - correct answerModification or the Constitution or a law; modification may be
either formal (written) or informal (unwritten).
Assets - correct answerFinancial, physical, and sometiems intangible properties an organization
owns.
Balance Sheet - correct answerStatement of a firm's financial position at a particular time.
Balanced scorecard - correct answerMeasurement approach that provides an overall picture of
an organization's performance as measured against goals in finance, customers, internal
business processes, and learning and growth.
Bill - correct answerProposal presented to a legislative body for possible enactment as a law.
Break-even analysis - correct answerAnalysis that shows point in time at which total revenue
associated with a program is equal to the total cost of the program.
Business Case - correct answerDescription of an organizational challenge and possible
alternative solutions, arguing for specific solution.
,Capacity - correct answerTo an operations department, the ability to yield output.
Cash flow statement - correct answerRecord of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - correct answerDegree to which decision-making authority is restricted to higher
levels of management in an organization.
Code of ethics - correct answerPrinciples of conduct within an organization that guide decision
making and behavior.
Consumer price index - correct answerMeasure of the average change over time in the prices
paid by consumers for goods and services.
Control - correct answerTo an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - correct answerMeasure that indicates the relationship between two variables.
Cost-benefit analysis - correct answerRatio of value created to cost of creating that value; allows
management to determine the financial impact particular activities and programs have on an
organization's profitability.
Decentralization - correct answerDegree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - correct answerWay an organization groups jobs to coordinate work.
Divestiture - correct answerSale by a company of an asset that is not performing well, that is not
core to the company's business, or that is worth more as a separate entity.
,Divisional structure - correct answerOrganizational structure in which segments ae separated by
product, customer or market, or region.
Due diligence - correct answerProcess of conducting an intensive investigation of an
organization as one of the first steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA) - correct answerAct that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - correct answerIntegrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - correct answerProcess that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - correct answerAmount of owners' or shareholders' portion of a business.
Ethics - correct answerSystem of moral principles and values that establish appropriate conduct.
Extended organization - correct answerAlliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - correct answerCalculations designed to describe an organization's financial
health and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - correct answerProhibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - correct answerForm of budgeting in which an average cost is applied to
comparable expenses and general funding is changed by a specific amount.
, Functional structure - correct answerOrganizational structure that defines departments by what
services they contribute to the organization's overall mission.
Gantt chart - correct answerProject planning tool that graphically displays activities of a project
in sequential order and plots them against time.
Generation X - correct answerGroup of people born roughly between the years of 1965 - 1980
Generation Y - correct answerGroup of people born after 1980.
Gross domestic product (GDP) - correct answerEstimate of the total value of goods and services
produced in a country in a given year.
Gross profit margin - correct answerRatio of gross profit to net sales.
HR audit - correct answerProcess to measure the effectiveness and efficiency of HR programs
and positions.
Human capital - correct answerCombined knowledge, skills, and experience of a company's
employees.
Human resource information system (HRIS) - correct answerSystematic tool for gathering,
storing, maintaining, retrieving, and revising HR data.
Human resource management (HRM) - correct answerDesign of formal systems in an
organization that ensure the effective and efficient use of human capital to accomplish
organizational goals.
Income statement - correct answerStatement comparing revenues, expenses, and profits over a
specified period of time, usually a year or a quarter.
