EEE Final (Eastham Online OkState)
UPDATED Exam Questions and
CORRECT Answers
financial management deals with 2 activities - CORRECT ANSWER raising money and
managing a companies finances
financial managements overall question is... - CORRECT ANSWER are we in good shape
financially?
entrepreneurial firm main financial objectives - CORRECT ANSWER profitability,
liquidity, efficiency, and stability
define profitability - CORRECT ANSWER the ability to earn a profit
define liquidity - CORRECT ANSWER a companies ability to meet its short term
financial obligations
define efficiency - CORRECT ANSWER how productively a firm utilizes its assets
relative to its revenue and its profits
define stability - CORRECT ANSWER the strength and vigor of the firms overall
financial posture
define a financial statement - CORRECT ANSWER a written report that quantitatively
describes a firms financial health
define forecasts - CORRECT ANSWER an estimate of a firms future income and
expenses, based on its past performance, its current circumstances, and future plans
,define budget - CORRECT ANSWER itemized forecasts of a companies financial needs
the process of financial management - CORRECT ANSWER preparation of historic
financial statements
preparation of forecasts preparation of pro forma financial statements
ongoing analysis of financial results
financial ratios purpose is to - CORRECT ANSWER discern whether the firm is meeting
its financial objectives and how it stacks up against its industry peers
most common SEC required filing form is the - CORRECT ANSWER 10-K
pro forma financial statements are - CORRECT ANSWER projections for future periods
based on forecasts
income statement reflects the results of the operations in a - CORRECT
ANSWER specific period of time
define profit margin - CORRECT ANSWER return on sales (net income/net sales)
balance sheet reflects the result of the operations in a - CORRECT ANSWER specific
point in time (snapshot)
what is a firms current ratio - CORRECT ANSWER the firms current assets divided by its
current liabilities
the statement of cash flows depicts the changes in a fimrs - CORRECT ANSWER cash
position for a specified period of time
define break even point - CORRECT ANSWER total revenues=total costs
, define working capital - CORRECT ANSWER current assets- current liabilities
what is not a question the financial management of the firm deals with - CORRECT
ANSWER how can we sell our products?
what is not a main financial obligation of the firm - CORRECT ANSWER affordability
what is an important tool for financial planning and control - CORRECT
ANSWER budgets
what is a statistical technique that finds relationships between variables to predict future values -
CORRECT ANSWER regression analysis
to keep a firm stable it must earn a profit but also keep its - CORRECT ANSWER debt in
check
what is accounting and bookkeeping schedule - CORRECT ANSWER business entity
business transactions
accountant/ bookkeeping
analyze, record, summarize
when do you have to establish a merchant account - CORRECT ANSWER if you plan to
accept credit cards
how credit card payments work - CORRECT ANSWER authorization, capture, settlement
what is the startup budget - CORRECT ANSWER the cost to launch the business
UPDATED Exam Questions and
CORRECT Answers
financial management deals with 2 activities - CORRECT ANSWER raising money and
managing a companies finances
financial managements overall question is... - CORRECT ANSWER are we in good shape
financially?
entrepreneurial firm main financial objectives - CORRECT ANSWER profitability,
liquidity, efficiency, and stability
define profitability - CORRECT ANSWER the ability to earn a profit
define liquidity - CORRECT ANSWER a companies ability to meet its short term
financial obligations
define efficiency - CORRECT ANSWER how productively a firm utilizes its assets
relative to its revenue and its profits
define stability - CORRECT ANSWER the strength and vigor of the firms overall
financial posture
define a financial statement - CORRECT ANSWER a written report that quantitatively
describes a firms financial health
define forecasts - CORRECT ANSWER an estimate of a firms future income and
expenses, based on its past performance, its current circumstances, and future plans
,define budget - CORRECT ANSWER itemized forecasts of a companies financial needs
the process of financial management - CORRECT ANSWER preparation of historic
financial statements
preparation of forecasts preparation of pro forma financial statements
ongoing analysis of financial results
financial ratios purpose is to - CORRECT ANSWER discern whether the firm is meeting
its financial objectives and how it stacks up against its industry peers
most common SEC required filing form is the - CORRECT ANSWER 10-K
pro forma financial statements are - CORRECT ANSWER projections for future periods
based on forecasts
income statement reflects the results of the operations in a - CORRECT
ANSWER specific period of time
define profit margin - CORRECT ANSWER return on sales (net income/net sales)
balance sheet reflects the result of the operations in a - CORRECT ANSWER specific
point in time (snapshot)
what is a firms current ratio - CORRECT ANSWER the firms current assets divided by its
current liabilities
the statement of cash flows depicts the changes in a fimrs - CORRECT ANSWER cash
position for a specified period of time
define break even point - CORRECT ANSWER total revenues=total costs
, define working capital - CORRECT ANSWER current assets- current liabilities
what is not a question the financial management of the firm deals with - CORRECT
ANSWER how can we sell our products?
what is not a main financial obligation of the firm - CORRECT ANSWER affordability
what is an important tool for financial planning and control - CORRECT
ANSWER budgets
what is a statistical technique that finds relationships between variables to predict future values -
CORRECT ANSWER regression analysis
to keep a firm stable it must earn a profit but also keep its - CORRECT ANSWER debt in
check
what is accounting and bookkeeping schedule - CORRECT ANSWER business entity
business transactions
accountant/ bookkeeping
analyze, record, summarize
when do you have to establish a merchant account - CORRECT ANSWER if you plan to
accept credit cards
how credit card payments work - CORRECT ANSWER authorization, capture, settlement
what is the startup budget - CORRECT ANSWER the cost to launch the business
