Question 1

Because of growing customer demand, Dave and Michelle want to double the size of their store. How can accounting help?

Accepted Answer

Dave and Michelle will need to review th...

Question 2

List three processes that a financial manager oversees.

Accepted Answer

A financial manager oversees three impor...

Question 3

Assets are the amounts that a companies owes to its creditors.

Accepted Answer

A) True 
 B)False  False

Question 4

Distinguish between managerial accounting and financial accounting.

Accepted Answer

Managerial accounting is responsible for tracking sales and the costs of producing the sales (production, marketing, and distribution). Managerial accountants help determine which business activities are most and least profitable. In addition, by monitoring the activities involved in planned budgets, managerial accountants help determine and anticipate in what areas the company strays from its budgeted expectations. Financial accounting is an area of accounting that produces financial documents to aid decision makers outside an organization in making decisions regarding investments and credibility. Investors and shareholders rely on financial accounting to help them evaluate a company's performance and profitability.

Question 5

What does GAAP stand for? Briefly describe its purpose.

Accepted Answer

For any financial information to be usef...

Question 6

All of the following are parts of the foundation of financial management EXCEPT ________.

Accepted Answer

A)  describing the history of double entry bookkeeping
B)  tracking past financial transactions
C)  controlling current revenues and expenses
D)  planning for future financial needs of the company

Question 7

On a balance sheet, the difference between cash and cash equivalent figures between periods is the same value that appears at the bottom of the ________ for the same period.

Accepted Answer

A)  income statement
B)  operating budget
C)  statement of cash flows
D)  equity statement

Question 8

Imagine that you have just completed your first budget as a new financial manager. How will you make sure that your company follows the budget?

Accepted Answer

After the budget is developed, it must be compared periodically to the actual performance of the company. It is very important that management compare actual performance regularly to the budget. This generally occurs every month. Without such a comparison, it is hard to determine whether the company is actually performing as expected. If the actual numbers generated by the company closely match the budget, this shows the company is fulfilling its plans. On the other hand, if the actual numbers differ greatly from those projected by the budget, this indicates that corrective actions must be taken.

Question 9

What is a cash flow budget?

Accepted Answer

The cash flow budget is a short-term bud...

Question 10

Liquidity is the speed at which assets can be turned into ________.

Accepted Answer

A)  liabilities
B)  cash
C)  owners' equity
D)  inventory

Question 11

Your boss asks you what was the bottom line on last year's results. You refer your boss to the ________ line on the income statement.

Accepted Answer

A)  revenue
B)  gross profit
C)  operating expenses
D)  net income

Question 12

Robin Airline's long-term leases of its jets are examples of current liabilities.

Accepted Answer

A) True 
 B)False

Question 13

CFO Jorge Sierra needs short-term financing for a large corporation. He decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days. Jorge is using ________.

Accepted Answer

A)  a mortgage
B)  factoring
C)  commercial paper
D)  retained earnings

Question 14

Adam Zarand wants to help his company decide whether or not to shut down an unproductive plant. Which type of accounting will he MOST LIKELY use?

Accepted Answer

A)  managerial
B)  tax
C)  government
D)  financial

Question 15

Why should shareholders and prospective investors monitor earnings per share closely?

Accepted Answer

Shareholders and prospective investors s...

Question 16

What is a balance sheet used for?

Accepted Answer

A balance sheet is a snapshot of a busin...

Question 17

In MOST companies, accounting is the only responsibility of the finance department.

Accepted Answer

A) True 
 B)False

Question 18

Jason Prows' job this week is to prepare a spreadsheet that shows his company's long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n) ________ budget.

Accepted Answer

A)  operating
B)  master
C)  capital
D)  tactical

Question 19

On an income statement, ________ - ________ = ________.

Accepted Answer

A)  assets; expenses; loss
B)  revenue; liabilities; profit
C)  revenue; expenses; profit (or loss) 
D)  revenue; expenses; owners' equity

Question 20

Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company's current ratio is ________.

Accepted Answer

A)  0) 50
B)  10.00
C)  2) 00
D)  20.00

Exam 15: Financing and Tracking Business Operations

Because of growing customer demand, Dave and Michelle want to double the size of their store. How can accounting help?

Correct Answer
verified
Dave and Michelle will need to review th...
View Answer

List three processes that a financial manager oversees.

Correct Answer
verified
A financial manager oversees three impor...
View Answer

Assets are the amounts that a companies owes to its creditors.

Correct Answer
verified
False

Distinguish between managerial accounting and financial accounting.

What does GAAP stand for? Briefly describe its purpose.

Correct Answer
verified
For any financial information to be usef...
View Answer

All of the following are parts of the foundation of financial management EXCEPT ________.

Correct Answer
verified

On a balance sheet, the difference between cash and cash equivalent figures between periods is the same value that appears at the bottom of the ________ for the same period.

Correct Answer
verified

Imagine that you have just completed your first budget as a new financial manager. How will you make sure that your company follows the budget?

What is a cash flow budget?

Correct Answer
verified
The cash flow budget is a short-term bud...
View Answer

Liquidity is the speed at which assets can be turned into ________.

Correct Answer
verified

Your boss asks you what was the bottom line on last year's results. You refer your boss to the ________ line on the income statement.

Correct Answer
verified

Robin Airline's long-term leases of its jets are examples of current liabilities.

Correct Answer
verified

CFO Jorge Sierra needs short-term financing for a large corporation. He decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days. Jorge is using ________.

Correct Answer
verified

Adam Zarand wants to help his company decide whether or not to shut down an unproductive plant. Which type of accounting will he MOST LIKELY use?

Correct Answer
verified

Why should shareholders and prospective investors monitor earnings per share closely?

Correct Answer
verified
Shareholders and prospective investors s...
View Answer

What is a balance sheet used for?

Correct Answer
verified
A balance sheet is a snapshot of a busin...
View Answer

In MOST companies, accounting is the only responsibility of the finance department.

Correct Answer
verified

Jason Prows' job this week is to prepare a spreadsheet that shows his company's long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n) ________ budget.

Correct Answer
verified

On an income statement, - = .

Correct Answer
verified

Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company's current ratio is ________.

Correct Answer
verified

Exam 15: Financing and Tracking Business Operations

Because of growing customer demand, Dave and Michelle want to double the size of their store. How can accounting help?

Correct AnswerverifiedDave and Michelle will need to review th...View AnswerShow Answer

List three processes that a financial manager oversees.

Correct AnswerverifiedA financial manager oversees three impor...View AnswerShow Answer

Assets are the amounts that a companies owes to its creditors.

Correct AnswerverifiedFalse

Distinguish between managerial accounting and financial accounting.

What does GAAP stand for? Briefly describe its purpose.

Correct AnswerverifiedFor any financial information to be usef...View AnswerShow Answer

All of the following are parts of the foundation of financial management EXCEPT ________.

Correct AnswerverifiedShow Answer

On a balance sheet, the difference between cash and cash equivalent figures between periods is the same value that appears at the bottom of the ________ for the same period.

Correct AnswerverifiedShow Answer

Imagine that you have just completed your first budget as a new financial manager. How will you make sure that your company follows the budget?

What is a cash flow budget?

Correct AnswerverifiedThe cash flow budget is a short-term bud...View AnswerShow Answer

Liquidity is the speed at which assets can be turned into ________.

Correct AnswerverifiedShow Answer

Your boss asks you what was the bottom line on last year's results. You refer your boss to the ________ line on the income statement.

Correct AnswerverifiedShow Answer

Robin Airline's long-term leases of its jets are examples of current liabilities.

Correct AnswerverifiedShow Answer

CFO Jorge Sierra needs short-term financing for a large corporation. He decides to issue an unsecured debt instrument of $200,000 to be paid back in 150 days. Jorge is using ________.

Correct AnswerverifiedShow Answer

Adam Zarand wants to help his company decide whether or not to shut down an unproductive plant. Which type of accounting will he MOST LIKELY use?

Correct AnswerverifiedShow Answer

Why should shareholders and prospective investors monitor earnings per share closely?

Correct AnswerverifiedShareholders and prospective investors s...View AnswerShow Answer

What is a balance sheet used for?

Correct AnswerverifiedA balance sheet is a snapshot of a busin...View AnswerShow Answer

In MOST companies, accounting is the only responsibility of the finance department.

Correct AnswerverifiedShow Answer

Jason Prows' job this week is to prepare a spreadsheet that shows his company's long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n) ________ budget.

Correct AnswerverifiedShow Answer

On an income statement, ________ - ________ = ________.

Correct AnswerverifiedShow Answer

Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company's current ratio is ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Dave and Michelle will need to review th...
View Answer

Correct Answer
verified
A financial manager oversees three impor...
View Answer

Correct Answer
verified
False

Correct Answer
verified
For any financial information to be usef...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The cash flow budget is a short-term bud...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Shareholders and prospective investors s...
View Answer

Correct Answer
verified
A balance sheet is a snapshot of a busin...
View Answer

Correct Answer
verified

Correct Answer
verified

On an income statement, - = .

Correct Answer
verified

Correct Answer
verified