Question 1

The statement of cash flows tells how efficiently management generates and uses cash.

Accepted Answer

A) True 
 B)False  True

Question 2

Iris Velez manages a department that calculates payments to be made to federal,state,and local governments.Iris works in ________.

Accepted Answer

A)  managerial accounting 
B)  auditing 
C)  tax accounting 
D)  sales accounting 
E)  financial 
A)  managerial accounting 
B)  auditing 
C)  tax accounting 
D)  sales accounting 
E)  financial C

Question 3

A common set of country-neutral accounting standards is known as International Financial Reporting Standards (IFRSs).

Accepted Answer

A) True 
 B)False  True

Question 4

What is a cash flow budget?

Accepted Answer

The cash flow budget is a short-term bud

Question 5

The clothing and accessories at New Fashion Stores,Inc.are an example of ________ assets.

Accepted Answer

A)  long-term 
B)  fixed 
C)  equipment 
D)  current 
E)  past due 
A)  long-term 
B)  fixed 
C)  equipment 
D)  current 
E)  past due

Question 6

Assets = Liabilities + Owners' Equity is the fundamental ________ equation.

Accepted Answer

A)  asset 
B)  accounting 
C)  mathematical 
D)  corporate 
E)  profit 
A)  asset 
B)  accounting 
C)  mathematical 
D)  corporate 
E)  profit

Question 7

What are three measurements used to analyze an income statement?

Accepted Answer

Measurements that reveal how effectively

Question 8

Financial statements represent what has happened in the past.

Accepted Answer

A) True 
 B)False

Question 9

How does financial management compare to other business activities?

Accepted Answer

Financial management involves the strate

Question 10

If a company has negative working capital,its current assets ________ its current liabilities.

Accepted Answer

A)  equal 
B)  are divided by 
C)  are less than 
D)  are greater than 
E)  are twice 
A)  equal 
B)  are divided by 
C)  are less than 
D)  are greater than 
E)  are twice

Question 11

Numbers used to compare current data to data from previous years,competitors' data,or industry averages is called ________ analysis.

Accepted Answer

A)  ratio 
B)  current 
C)  debt 
D)  inventory 
E)  equity 
A)  ratio 
B)  current 
C)  debt 
D)  inventory 
E)  equity

Question 12

List three processes that a financial manager oversees.

Accepted Answer

A financial manager oversees three impor

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

Question 14

Tracking a business's income and expenses through a process of recording financial transactions is called ________.

Accepted Answer

A)  sales 
B)  production 
C)  strategy 
D)  accounting 
E)  budgeting 
A)  sales 
B)  production 
C)  strategy 
D)  accounting 
E)  budgeting

Question 15

Financing with equity allows a company to retain profits and cash rather than to make interest payments and to pay back debt.

Accepted Answer

A) True 
 B)False

Question 16

Assets at New Fashion Stores,Inc.equal $10 million.Liabilities equal $8 million.Therefore,owners' equity equals $2 million.

Accepted Answer

A) True 
 B)False

Question 17

The financing activities section of a statement of cash flows includes cash used or provided by the core business of the company.

Accepted Answer

A) True 
 B)False

Question 18

The biggest disadvantage of bond financing is the dilution of ownership.

Accepted Answer

A) True 
 B)False

Question 19

Demand deposits include ________ accounts.

Accepted Answer

A)  only checking 
B)  only savings 
C)  both checking and savings 
D)  commercial paper 
E)  credit card 
A)  only checking 
B)  only savings 
C)  both checking and savings 
D)  commercial paper 
E)  credit card

Question 20

What does an income statement show?

Accepted Answer

The income statement reflects the profit

Exam 15: Financing and Tracking Business Operations

The statement of cash flows tells how efficiently management generates and uses cash.

Iris Velez manages a department that calculates payments to be made to federal,state,and local governments.Iris works in ________.

A common set of country-neutral accounting standards is known as International Financial Reporting Standards (IFRSs).

What is a cash flow budget?

The clothing and accessories at New Fashion Stores,Inc.are an example of ________ assets.

Assets = Liabilities + Owners' Equity is the fundamental ________ equation.

What are three measurements used to analyze an income statement?

Financial statements represent what has happened in the past.

How does financial management compare to other business activities?

If a company has negative working capital,its current assets ________ its current liabilities.

Numbers used to compare current data to data from previous years,competitors' data,or industry averages is called ________ analysis.

List three processes that a financial manager oversees.

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 ________.

Tracking a business's income and expenses through a process of recording financial transactions is called ________.

Financing with equity allows a company to retain profits and cash rather than to make interest payments and to pay back debt.

Assets at New Fashion Stores,Inc.equal $10 million.Liabilities equal $8 million.Therefore,owners' equity equals $2 million.

The financing activities section of a statement of cash flows includes cash used or provided by the core business of the company.

The biggest disadvantage of bond financing is the dilution of ownership.

Demand deposits include ________ accounts.

What does an income statement show?

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