Terms in this set (10)
1) Net income as a percentage of gross revenues and
return on equity are the two most important indicators of:
a. Profitability
a. Profitability
b. Credit worthiness
c. Market Strength
d. Cash Position
2) When reviewing assets, which element is the most
important indication of an organization's liquidity?
a. Buildings and equipment
c. Cash and short-term investments
b. Long-term investments
c. Cash and short-term investments
d. Land and other assets
3) Financial statements are important in order to:
a. Identify, measure, record and communicate, in dollar
a. Identify, measure, record and terms, the economic events and status of an organization
communicate, in dollar terms, the b. Serve as a control mechanism for budgeting
economic events and status of an c. Provide detailed financial information for control at the
organization department level
d. Provide staffing guidelines to human resources
managers
4) In most cases, the most favorable opinion that an
organization can receive is a(n):
a. Qualified Opinion
d. Unqualified Opinion
b. Adverse Opinion
c. Disclaimer of Opinion
d. Unqualified Opinion
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, 5) The purpose of the statement of operations, or income
statement, is to:
a. Present the financial position of the organization at a
specific point in time
b. Present the reasons net assets changed from one
d. Present the operating results of
period to another
the organization over a period of
c. Present cash receipts and where they came from and
time
cash disbursements and where they went during an
accounting period
d. Present the operating results of the organization over a
period of time
6) Ratios that measure an organization's long-term liquidity
are called:
a. Liquidity ratios
c. Capital structure ratios
b. Profitability ratios
c. Capital structure ratios
d. Efficiency ratios
7) The purpose of the strategic financial plan is to:
a. Look into the future ten year to determine what the
d. Identify resources that will be business will look like
necessary to accomplish the b. Translate the strategic plan into next year's objectives
strategic plan c. Convert the operating plan into monetary terms
d. Identify resources that will be necessary to accomplish
the strategic plan
8) A zero-based plan or budget could best be described
as:
a. Starting each planning or budget cycle with a clean
slate
a. Starting each planning or budget
b. Adjusting expenses based on realized volumes
cycle with a clean slate
c. Allowing unencumbered funds to be transferred to the
next year
d. Limiting department managers to only the expenses
they control
https://www.stuvia.com/
1) Net income as a percentage of gross revenues and
return on equity are the two most important indicators of:
a. Profitability
a. Profitability
b. Credit worthiness
c. Market Strength
d. Cash Position
2) When reviewing assets, which element is the most
important indication of an organization's liquidity?
a. Buildings and equipment
c. Cash and short-term investments
b. Long-term investments
c. Cash and short-term investments
d. Land and other assets
3) Financial statements are important in order to:
a. Identify, measure, record and communicate, in dollar
a. Identify, measure, record and terms, the economic events and status of an organization
communicate, in dollar terms, the b. Serve as a control mechanism for budgeting
economic events and status of an c. Provide detailed financial information for control at the
organization department level
d. Provide staffing guidelines to human resources
managers
4) In most cases, the most favorable opinion that an
organization can receive is a(n):
a. Qualified Opinion
d. Unqualified Opinion
b. Adverse Opinion
c. Disclaimer of Opinion
d. Unqualified Opinion
https://www.stuvia.com/
, 5) The purpose of the statement of operations, or income
statement, is to:
a. Present the financial position of the organization at a
specific point in time
b. Present the reasons net assets changed from one
d. Present the operating results of
period to another
the organization over a period of
c. Present cash receipts and where they came from and
time
cash disbursements and where they went during an
accounting period
d. Present the operating results of the organization over a
period of time
6) Ratios that measure an organization's long-term liquidity
are called:
a. Liquidity ratios
c. Capital structure ratios
b. Profitability ratios
c. Capital structure ratios
d. Efficiency ratios
7) The purpose of the strategic financial plan is to:
a. Look into the future ten year to determine what the
d. Identify resources that will be business will look like
necessary to accomplish the b. Translate the strategic plan into next year's objectives
strategic plan c. Convert the operating plan into monetary terms
d. Identify resources that will be necessary to accomplish
the strategic plan
8) A zero-based plan or budget could best be described
as:
a. Starting each planning or budget cycle with a clean
slate
a. Starting each planning or budget
b. Adjusting expenses based on realized volumes
cycle with a clean slate
c. Allowing unencumbered funds to be transferred to the
next year
d. Limiting department managers to only the expenses
they control
https://www.stuvia.com/
