QUESTION Which of the following is considered a tangible asset? A) a plot of land B) a software patent C) the copyright on a book D) a trademark on a food product E) the goodwill a neighborhood business has gained ANSWER Answer: A Explanation: A) Tangible assets are defined as land, buildings, and equipment. […]
Date: September 3rd, 2020
QUESTION Which of the following is defined as predicting revenues, costs, and expenses for a certain period of time? A) forecasting B) budgeting C) accounting D) planning E) operating ANSWER Answer: A Explanation: A) Forecasting is predicting revenues, costs, and expenses for a certain period of time.
Date: September 3rd, 2020
QUESTION Which type of budget ties together the other three types of budgets? A) capital budget B) cash budget C) master budget D) operating budget E) sales budget ANSWER Answer: C Explanation: C) Master budgets tie together the other three budgets (capital, cash, and operating) to present the company’s overall plan of action for […]
Date: September 3rd, 2020
QUESTION Which type of forecasting involves a prediction about how money will come in and go out of a firm in the near future, usually within the next 1 to 3 months? A) short-term forecasting B) long-term forecasting C) cash flow forecasting D) extended forecasting E) budget forecasting ANSWER Answer: C Explanation: C) Cash […]
Date: September 3rd, 2020
QUESTION How far out do most lenders want financial plans to extend? A) 1 month B) 6 months C) 1 year D) 2 years E) 5 years ANSWER Answer: C Explanation: C) Most short-term lenders are interested in 1-year financial plans. Long-term investors, such as stockholders, care more about long-range financial plans, such as […]
Date: September 3rd, 2020
QUESTION Which of the following BEST defines solvency? A) being able to pay debts when they become due B) managing money in the optimum way C) earning more money than the previous year D) assuring that gains outweigh losses E) predicting revenues, costs, and expenses accurately ANSWER Answer: A Explanation: A) To be solvent […]
Date: September 3rd, 2020
QUESTION Which of the following is among the four principal types of budgets? A) forecasting budget B) long-term budget C) short-term budget D) capital budget E) discretionary budget ANSWER Answer: D Explanation: D) The four principal types of budgets are operating budgets, capital budgets, cash budgets, and master budgets.
Date: September 3rd, 2020
QUESTION What is the time period over which a budget typically shows estimated revenue and expenses? A) one month B) six months C) one year D) two years E) five years ANSWER Answer: C Explanation: C) A typical budget shows estimated revenues and expenses for a time period of one year.
Date: September 3rd, 2020
QUESTION What is a budget? A) a complete statement of financial management B) a financial plan covering stock options C) a financial plan showing estimated revenues and expenses D) a plan for implementing financial controls E) an estimate of the cash flow for a period of time ANSWER Answer: C Explanation: C) One part […]
Date: September 3rd, 2020
QUESTION Which of the following is TRUE of the long-term forecast? A) It must go out no further than the next 5 years. B) It can go out as little as 6 months. C) It may be varied to reflect different overall strategic plans. D) It identifies a firm’s sales goals and specifies the costs […]
Date: September 3rd, 2020
