Question 1

FASB stands for ________.

Accepted Answer

A)  Financial Accounting Standard Budget 
B)  Financial Accounting Short-Term Budget 
C)  Financial Architects Standards Board 
D)  Financial Accounting Standard Board 
E)  Financial Accountants Service Budget 
A)  Financial Accounting Standard Budget 
B)  Financial Accounting Short-Term Budget 
C)  Financial Architects Standards Board 
D)  Financial Accounting Standard Board 
E)  Financial Accountants Service Budget

Question 2

What does GAAP stand for? Briefly describe its purpose.

Accepted Answer

For any financial information to be usef

Question 3

Your boss asks you to e-mail a spreadsheet that shows what the company owns and what it has borrowed (owes)at a fixed point in time and shows the net worth of the business.When sending the e-mail,you MOST LIKELY will attach the file named ________.

Accepted Answer

A)  Income_Statement 
B)  Statement_of_Cash_Flows 
C)  Balance_Sheet 
D)  Capital_Budget 
E)  Operating_Budget 
A)  Income_Statement 
B)  Statement_of_Cash_Flows 
C)  Balance_Sheet 
D)  Capital_Budget 
E)  Operating_Budget

Question 4

All of the following can be determined from a statement of cash flows EXCEPT the company's ability to ________.

Accepted Answer

A)  pay its bills 
B)  manage production 
C)  buy new inventory 
D)  afford salary obligations 
E)  make investments in the business 
A)  pay its bills 
B)  manage production 
C)  buy new inventory 
D)  afford salary obligations 
E)  make investments in the business

Question 5

As a financial manager,you decide to borrow funds in order to meet payroll.Your company will pay back the funds within nine months.You are seeking ________ financing.

Accepted Answer

A)  long-term 
B)  short-term 
C)  retained earnings 
D)  equity 
E)  capital 
A)  long-term 
B)  short-term 
C)  retained earnings 
D)  equity 
E)  capital

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

Because accounting requires a great deal of precision and accuracy,there is no room for interpretation in accounting.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

A financial manager is responsible for ________.

Accepted Answer

A)  raising capital for future growth and expansion 
B)  setting prices for products 
C)  billing customers and paying staff 
D)  rating the financial strength of competitors 
E)  processing payroll 
A)  raising capital for future growth and expansion 
B)  setting prices for products 
C)  billing customers and paying staff 
D)  rating the financial strength of competitors 
E)  processing payroll

Question 11

Housing Repair Co.has total revenue of $100,000.COGS is $40,000.The company's gross profit margin is ________.

Accepted Answer

A)  0.40 
B)  1.40 
C)  0.67 
D)  0.60 
E)  1.50 
A)  0.40 
B)  1.40 
C)  0.67 
D)  0.60 
E)  1.50

Question 12

If a start-up company cannot get a loan and does not want to use venture capital,what is another method it could try for raising equity?

Accepted Answer

Raising capital through owner's equity i

Question 13

Distinguish between managerial accounting and financial accounting.

Accepted Answer

Managerial accounting uses accounting in

Question 14

The money a company makes just from its products is called ________.

Accepted Answer

A)  gross capital 
B)  net equity 
C)  gross profit 
D)  net profit 
E)  revenue 
A)  gross capital 
B)  net equity 
C)  gross profit 
D)  net profit 
E)  revenue

Question 15

Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.

Accepted Answer

A) True 
 B)False

Question 16

Commercial banks are financial institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals.

Accepted Answer

A) True 
 B)False

Question 17

Using leverage is always beneficial.

Accepted Answer

A) True 
 B)False

Question 18

Factoring is the process of selling accounts receivable for cash instead of using them as collateral for a loan.

Accepted Answer

A) True 
 B)False

Question 19

Monitoring cash flow is important because it measures a company's ________.

Accepted Answer

A)  short-term financial health and financial efficiency 
B)  future needs for equipment 
C)  long-term financial health and financial efficiency 
D)  total assets 
E)  equity 
A)  short-term financial health and financial efficiency 
B)  future needs for equipment 
C)  long-term financial health and financial efficiency 
D)  total assets 
E)  equity

Question 20

Government and not-for-profit accounting refers to the accounting required for organizations that are not focused on generating a profit,such as legislative bodies and charities.

Accepted Answer

A) True 
 B)False

Exam 15: Financing and Tracking Business Operations

FASB stands for ________.

What does GAAP stand for? Briefly describe its purpose.

Your boss asks you to e-mail a spreadsheet that shows what the company owns and what it has borrowed (owes)at a fixed point in time and shows the net worth of the business.When sending the e-mail,you MOST LIKELY will attach the file named ________.

All of the following can be determined from a statement of cash flows EXCEPT the company's ability to ________.

As a financial manager,you decide to borrow funds in order to meet payroll.Your company will pay back the funds within nine months.You are seeking ________ financing.

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

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

Because accounting requires a great deal of precision and accuracy,there is no room for interpretation in accounting.

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?

A financial manager is responsible for ________.

Housing Repair Co.has total revenue of $100,000.COGS is $40,000.The company's gross profit margin is ________.

If a start-up company cannot get a loan and does not want to use venture capital,what is another method it could try for raising equity?

Distinguish between managerial accounting and financial accounting.

The money a company makes just from its products is called ________.

Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.

Commercial banks are financial institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals.

Using leverage is always beneficial.

Factoring is the process of selling accounts receivable for cash instead of using them as collateral for a loan.

Monitoring cash flow is important because it measures a company's ________.

Government and not-for-profit accounting refers to the accounting required for organizations that are not focused on generating a profit,such as legislative bodies and charities.

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