PHR Certification 2026 correct answers
Accounts Payable - correct answers Money an organization owes its vendors and suppliers.
Accounts Receivable - correct answers Money an organization's customers owe the
organization.
Action Plans - correct answers Detailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - correct answers Modification or the Constitution or a law; modification may be
either formal (written) or informal (unwritten).
Assets - correct answers Financial, physical, and sometiems intangible properties an
organization owns.
Balance Sheet - correct answers Statement of a firm's financial position at a particular time.
Balanced scorecard - correct answers Measurement 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 answers Proposal presented to a legislative body for possible enactment as a law.
Break-even analysis - correct answers Analysis 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 answers Description of an organizational challenge and possible
alternative solutions, arguing for specific solution.
,Capacity - correct answers To an operations department, the ability to yield output.
Cash flow statement - correct answers Record of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - correct answers Degree to which decision-making authority is restricted to
higher levels of management in an organization.
Code of ethics - correct answers Principles of conduct within an organization that guide decision
making and behavior.
Consumer price index - correct answers Measure of the average change over time in the prices
paid by consumers for goods and services.
Control - correct answers To an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - correct answers Measure that indicates the relationship between two variables.
Cost-benefit analysis - correct answers Ratio 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 answers Degree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - correct answers Way an organization groups jobs to coordinate work.
,Divestiture - correct answers Sale 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 answers Organizational structure in which segments ae separated
by product, customer or market, or region.
Due diligence - correct answers Process 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 answers Act that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - correct answers Integrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - correct answers Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - correct answers Amount of owners' or shareholders' portion of a business.
Ethics - correct answers System of moral principles and values that establish appropriate
conduct.
Extended organization - correct answers Alliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - correct answers Calculations designed to describe an organization's financial
health and performance from various perspectives.
, Foreign Corrupt Practices Act (FCPA) - correct answers Prohibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - correct answers Form of budgeting in which an average cost is applied to
comparable expenses and general funding is changed by a specific amount.
Functional structure - correct answers Organizational structure that defines departments by
what services they contribute to the organization's overall mission.
Gantt chart - correct answers Project planning tool that graphically displays activities of a
project in sequential order and plots them against time.
Generation X - correct answers Group of people born roughly between the years of 1965 - 1980
Generation Y - correct answers Group of people born after 1980.
Gross domestic product (GDP) - correct answers Estimate of the total value of goods and
services produced in a country in a given year.
Gross profit margin - correct answers Ratio of gross profit to net sales.
HR audit - correct answers Process to measure the effectiveness and efficiency of HR programs
and positions.
Human capital - correct answers Combined knowledge, skills, and experience of a company's
employees.
Accounts Payable - correct answers Money an organization owes its vendors and suppliers.
Accounts Receivable - correct answers Money an organization's customers owe the
organization.
Action Plans - correct answers Detailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - correct answers Modification or the Constitution or a law; modification may be
either formal (written) or informal (unwritten).
Assets - correct answers Financial, physical, and sometiems intangible properties an
organization owns.
Balance Sheet - correct answers Statement of a firm's financial position at a particular time.
Balanced scorecard - correct answers Measurement 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 answers Proposal presented to a legislative body for possible enactment as a law.
Break-even analysis - correct answers Analysis 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 answers Description of an organizational challenge and possible
alternative solutions, arguing for specific solution.
,Capacity - correct answers To an operations department, the ability to yield output.
Cash flow statement - correct answers Record of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - correct answers Degree to which decision-making authority is restricted to
higher levels of management in an organization.
Code of ethics - correct answers Principles of conduct within an organization that guide decision
making and behavior.
Consumer price index - correct answers Measure of the average change over time in the prices
paid by consumers for goods and services.
Control - correct answers To an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - correct answers Measure that indicates the relationship between two variables.
Cost-benefit analysis - correct answers Ratio 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 answers Degree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - correct answers Way an organization groups jobs to coordinate work.
,Divestiture - correct answers Sale 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 answers Organizational structure in which segments ae separated
by product, customer or market, or region.
Due diligence - correct answers Process 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 answers Act that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - correct answers Integrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - correct answers Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - correct answers Amount of owners' or shareholders' portion of a business.
Ethics - correct answers System of moral principles and values that establish appropriate
conduct.
Extended organization - correct answers Alliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - correct answers Calculations designed to describe an organization's financial
health and performance from various perspectives.
, Foreign Corrupt Practices Act (FCPA) - correct answers Prohibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - correct answers Form of budgeting in which an average cost is applied to
comparable expenses and general funding is changed by a specific amount.
Functional structure - correct answers Organizational structure that defines departments by
what services they contribute to the organization's overall mission.
Gantt chart - correct answers Project planning tool that graphically displays activities of a
project in sequential order and plots them against time.
Generation X - correct answers Group of people born roughly between the years of 1965 - 1980
Generation Y - correct answers Group of people born after 1980.
Gross domestic product (GDP) - correct answers Estimate of the total value of goods and
services produced in a country in a given year.
Gross profit margin - correct answers Ratio of gross profit to net sales.
HR audit - correct answers Process to measure the effectiveness and efficiency of HR programs
and positions.
Human capital - correct answers Combined knowledge, skills, and experience of a company's
employees.
