Term
A local bakery received $12,000 in cash payments and another $27,000 in credit card payments. This is an example of which financial planning principle?
a. Revenue
b. Expenses
c. Profit
d. Loss |
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Definition
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Term
Durham Public Schools spends $1.2 million on electricity each year. This is an example of which financial planning principle?
a. Profit
b. Loss
c. Revenue
d. Expenses |
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Definition
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Term
Coca-Cola earned $84 million in revenue and spent $26 million on operating expenses in 2010. This is an example of which financial planning principle?
a. Loss
b. Margin
c. Profit
d. Income |
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Definition
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Term
A local bookstore earned $92,000 in revenue and spent $132,000 on operating expenses in 2008.
This is an example of which financial planning principle?
a. Loss
b. Margin
c. Profit
d. Income |
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Definition
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Term
Which of the following is NOT a reason for financial planning?
a. Increases financial uncertainties
b. Increases control of financial activities
c. Provides a map of finances for business
d. Makes it easier to stick to financial processes and goals. |
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Definition
| Increases financial uncertainties |
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Term
The chief financial officer for ADIDAS analyses the revenue and expense reports from last quarter to determine if the company is earning enough profit. This is an example of which phase of business?
a. Start-up
b. Operation
c. Progression
d. Expansion |
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Definition
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Term
Tami projected from where funds would come to operate her business until a profit is made. This is an example of which phase of business?
a. Start-up
b. Operation
c. Progression
d. Expansion |
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Definition
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Term
Which of the following is NOT a step in the budgeting process?
a. Prepare a list of income and expense items.
b. Gather accurate information from business records.
c. Conduct a budget meeting.
d. Communicate the budget to key employees in order to make sound business decisions. |
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Definition
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Term
Chipotle Mexican Grill is opening five new restaurants in North Carolina in 2011. This is an example of which phase of business?
a. Start-up
b. Operation
c. Progression
d. Expansion |
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Definition
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Term
Which of the following is NOT a step in the budgeting process?
a. Hire a financial planner.
b. Prepare a list of income and expense items.
c. Gather accurate information from business records.
d. Create the budget. |
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Definition
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Term
The owner of a local restaurant prepares a monthly financial plan that helps manage the restaurants ongoing business operations. This plan is an example of which type of budget?
a. Start-up budget
b. Operating budget
c. Cash budget
d. Marginal budget |
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Definition
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Term
Which of the following is NOT a step in the budgeting process?
a. Prepare a list of income and expense items.
b. Create the budget.
c. Prepare a budget proposal.
d. Communicate the budget to key employees in order to make sound business decisions. |
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Definition
| Prepare a Budget Proposal |
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Term
A new business owner prepares a financial plan that identifies the income and expenses from the start of the new business until the business begins to earn a profit. This plan is an example of which type of budget?
a. Start-up budget
b. Operating budget
c. Cash budget
d. Marginal budget |
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Definition
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Term
Which of the following is NOT a step in the budgeting process?
a. Develop the process.
b. Gather accurate information from business records.
c. Create the budget.
d. Communicate the budget to key employees in order to make sound business decisions. |
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Definition
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Term
The chief financial officer of a major software production company prepares a report that estimates of the actual money that the company is predicted to receive and pay out for the month of July. This report is an example of which type of budget?
a. Start-up budget
b. Operating budget
c. Cash budget
d. Marginal budget |
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Definition
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Term
Which of the following is NOT a reason for financial planning?
a. Reduces financial uncertainties
b. Reduces control of financial activities
c. Provides a map of finances for business
d. Makes it easier to stick to financial processes and goals. |
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Definition
| Reduces control of financial activities |
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Term
Companies are required by law to withhold a percentage of each employee’s salaries and wages for federal and state income taxes. Which financial record will contain this information?
a. Depreciation records
b. Cash records
c. Payroll records
d. Tax records |
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Definition
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Term
Walter needs to know the current value of his company’s equipment. Which financial record will contain this information?
a. Asset records
b. Depreciation records
c. Inventory records
d. Records of accounts |
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Definition
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Term
At the end of each week, Tyson Production Company calculates the total number of products produced and stored at their storage facility. Which financial record will contain this information?
a. Asset records
b. Depreciation records
c. Inventory records
d. Records of accounts |
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Definition
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Term
A local company orders office supplies from Staples and makes full payment using a company credit card. Which financial record will contain this information?
a. Asset records
b. Depreciation records
c. Accounts Receivable
d. Accounts Payable |
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Definition
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Term
The human resources manager maintains a list of the employees that work for her company; as well as their salary and benefit information. Which financial record will contain this information?
a. Depreciation records
b. Cash records
c. Payroll records
d. Tax records |
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Definition
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Term
Jeremiah needs to know the value that has been lost due to the old age of his tractor. Which financial record will contain this information?
a. Asset records
b. Depreciation records
c. Accounts Receivable
d. Accounts Payable |
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Definition
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Term
A small convenience store only accepts cash payments in order to eliminate the cost of purchasing the machines necessary for processing credit card payments. Which financial record will contain this information?
a. Depreciation records
b. Cash records
c. Payroll records
d. Tax records |
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Definition
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Term
A majority of the customers pay for gasoline at a local gas station using a credit card. Which financial record will contain this information?
a. Asset records
b. Depreciation records
c. Accounts Receivable
d. Accounts Payable |
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Definition
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Term
A local trucking company owns eight trucks and two full-service garages. This is an example of which financial element?
a. Assets
b. Employees
c. Liabilities
d. Owner’s equity |
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Definition
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Term
A local seafood restaurant owes a shipping company $1,200 for daily shrimp delivery. This is an example of which financial element?
a. Assets
b. Employees
c. Liabilities
d. Owner’s equity |
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Definition
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Term
A local printing company is worth $1.6 million. This is an example of which financial element?
a. Assets
b. Revenue
c. Liabilities
d. Owner’s equity |
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Definition
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Term
The chief financial officer for a major textile company analyzes the revenue, expenses, and net income from the first quarter of the fiscal year. Which financial statement contains this information?
a. Income statement
b. Balance sheet
c. Financial statements
d. Sales |
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Definition
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Term
The board of directors for a major software development company reviews all of the assets and liabilities of the company at the annual board meeting. Which financial statement contains this information?
a. Income statement
b. Balance sheet
c. Financial statements
d. Current liabilities |
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Definition
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Term
Tom can find the revenue and expenses of his business at the end of year on which type of financial statement?
a. Balance sheet.
b. Budget
c. Income statement
d. Owner’s equity |
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Definition
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Term
Amy’s business collected $398,000 in sales last year and paid $103,000 in expenses. Which is the net income/net loss amount for the business?
a. $25,000 net income
b. $95,000 net loss
c. $295,000 net income
d. $9,000 net loss |
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Definition
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Term
Which financial report would the chief financial officer of a major retail company use to analyze financial data to evaluate the performance of the company?
a. Financial Records
b. Financial Statements
c. Financial Performance Ratios
d. Financial Discrepancy Reports |
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Definition
| Financial Performance Ratios |
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Term
Which financial ratio will John use if he wants to determine the amount of profit earned on each dollar of sales for the second quarter of the fiscal year?
a. Current
b. Debt to equity
c. Net income
d. Return on equity |
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Definition
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Term
Which financial ratio would Bradley use if he wants to compare current company assets to the current liabilities of the company?
a. Net income Ratio
b. Current Ratio
c. Return on Equity Ratio
d. Debt to Equity Ratio |
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Definition
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Term
Miranda divides the total liability of her company by her equity to determine how much borrowed money is being used to operate her company. This is an example of which financial ratio?
a. Net income Ratio
b. Current Ratio
c. Return on Equity Ratio
d. Debt to Equity Ratio |
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Definition
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Term
Juliana divides the net profit of her company by her equity to determine how much money she is earning on her original investment. This is an example of which financial ratio?
a. Return on Equity Ratio
b. Net income Ratio
c. Current Ratio
d. Debt to Equity Ratio |
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Definition
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