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BE Chapter 21 Financial Management Flashcards | StudBud
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BE Chapter 21 Financial Management
BE Chapter 21 Financial Management
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BE Chapter 21 Quiz
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
5% sales/yr. 2% inflation, $400K sold, projected sales would be
$28,000.00
$420,000.00
$428,000.00
$450,000.00
2
The reason you evaluate and adjust your profit planning is to
improve your profit picture.
obtain more credit form lenders.
increase inventory.
decrease theft.
3
If you divide your Total Liabilities by your Total Assets it will give you your
Quick Ratio
Operating Ratio.
net worth.
Debt Ratio.
4
Which is not a way to manage your tax liability?
Claim research and development expenses.
Write off uncollectible accounts.
Time deductions.
Pay taxes quarterly.
5
How is the fastest way to improve cash flow?
increase sales.
reduce expenses.
ask Grandma for an early Birthday Gift.
borrow more money.
6
Fixed cost $8000.00, variable exp. $300.00 selling price is $400.00 what's the break even qty.?
80
100
70
90
7
The major advantage of extending credit is that
it provides easier record keeping.
better relationships made with customers.
selling by telephone & Internet is easier.
sales volume is increased.
8
Do business owners need to make sales projections?
no
yes
can't do it.
only if they want to.
9
A financial statement with data form two accounting periods is called a
duel accounting statement.
comparative financial statement.
aged report.
comparative analysis statement.
10
The measure of the relationship between short term liquid assets and current liabilities is
debt ratio.
operating ratio.
a quick ratio.
working capital.
11
A bookkeeper does the following
makes sure your taxes are calculated correctly.
posting of transactions.
optimize profits.
makes sure your records are in order.
12
The two primary financial statements of a business are
P & L and Cash Receipts Journal
Balance Sheet and Accounts Receivable Report.
P & L and Balance Sheet.
Balance Sheet and General Ledger
13
Which is a disadvantage of offering credit to customers?
may affect your relationship with them.
may not buy your products.
no disadvantage.
slow paying customers affects cash flow.
14
If you cannot collect on an account that owes you money you
just write it off.
call Uncle Guedo to go rough them up.
can hire a collection agency for a fee.
never give them any credit.
15
Under the Truth in Lending Act, businesses must inform customers
how finance charges are calculated.
of their credit rating.
of the time required to make a payment.
why they did not receive a loan.
16
How would you rate the Zach Sobiech story? 1 to 4 (4 best)
3
2
1
4
17
Estimated cash flow, actual cash flow, and the difference between the two amounts is a
cash forecast.
cash flow statement.
income statement.
cash budget.
18
How many of you will establish a personal budget?
None.
3
1
5
19
If you divide your net income by your sales you will have your
net profit on sales ratio.
Quick Ratio
Operating Ratio
Debt Ratio
20
The ratio that shows the relationship between each expense and total sales is called a
debt ratio.
net profit on sales ratio.
operating ratio.
quick ratio
21
A quick ratio is calculated using amounts found on
the cash budget.
the sales report.
the balance sheet.
the income statement.
22
A formal, written statement of expected revenue and expenses for a future period is called a
sales forecast.
P & L statement.
balance sheet.
budget.
23
Which of the following is NOT true about accountants?
They interpret financial records.
They make business decisions.
They prepare financial records.
They will post journal entries to the General Ledger.
24
Long term commitments of large sums of money to buy or replace physical assets is called
Capital planning.
Capital Expenditures.
a fixed asset purchase.
a long term loan.
25
When should you cosign for a loan for someone?
Business Partner.
Never.
Immediate Family member.
Best Friend.
26
Which of the following would use ratio analysis to determine financial strength of a business?
Lenders
All
Owners
Creditors
27
A ratio that compares current assets and current liabilities is a
Quick Ratio.
operating ratio.
debt ratio.
current ratio.
28
Which of the following would not be a way to improve cash flow?
Reduce expenses.
Take advantage of credit terms.
Offer cash discounts.
Increase accounts payable.
29
If you subtract your current liabilities from your current assets it will tell you your
debt ratio.
net profit.
working capital.
total revenue.
30
An agency that collects information on how promptly businesses pay their bills is a
Federal Bureau of Investigation.
Credit business.
Central Intelligence Agency.
Credit bureau.
