Financial Decision Making Exam 1
Questions with verified answers
Income Statement - Correct Answer measures a company's performance and profitability during a time
period
Balance Sheet - Correct Answer measures a company's financial position at a point in time
Cashflow Statement - Correct Answer measures how much cash it received and paid during a time
period
What is an operating expense? Include Examples. - Correct Answer Costs a company incur that are
related to the production of a product or service. Ex) Supplies, Utilities, Marketing, Insurance, Payroll,
Taxes
The difference between direct and indirect operating expenses: - Correct Answer Direct is the
department expenses like Telecommunications, F+B, Rooms, while Indirect is the Human Resources,
Maintenance
Difference between a cost center and a revenue center: - Correct Answer You can generate revenue
from revenue center but the cost center does not generate
Example of Revenue Center: - Correct Answer Rooms department, F+B department,
Telecommunications department
Examples of Cost Center: - Correct Answer Administrative, Accounting, Human Resources, Maintenance
Controllable Expenses - Correct Answer example would be labor costs
Uncontrollable Expenses - Correct Answer example would be rent or insurance
Questions with verified answers
Income Statement - Correct Answer measures a company's performance and profitability during a time
period
Balance Sheet - Correct Answer measures a company's financial position at a point in time
Cashflow Statement - Correct Answer measures how much cash it received and paid during a time
period
What is an operating expense? Include Examples. - Correct Answer Costs a company incur that are
related to the production of a product or service. Ex) Supplies, Utilities, Marketing, Insurance, Payroll,
Taxes
The difference between direct and indirect operating expenses: - Correct Answer Direct is the
department expenses like Telecommunications, F+B, Rooms, while Indirect is the Human Resources,
Maintenance
Difference between a cost center and a revenue center: - Correct Answer You can generate revenue
from revenue center but the cost center does not generate
Example of Revenue Center: - Correct Answer Rooms department, F+B department,
Telecommunications department
Examples of Cost Center: - Correct Answer Administrative, Accounting, Human Resources, Maintenance
Controllable Expenses - Correct Answer example would be labor costs
Uncontrollable Expenses - Correct Answer example would be rent or insurance
