Exam 15: Financing and Tracking Business Operations

Chief financial officer Ellen Soroti asks her company's bank for a loan. The bank agrees and says that no collateral is required. Ellen's company is being granted a(n)________ loan.

Why is the statement of cash flows important?

Susan Capelongo manages a department that prepares financial statements to be sent to current and potential stockholders. Susan works in ________.

Chief financial officer Randy Fujiwara decides not to use debt financing nor to issue new stock. What option is left for obtaining long-term financing to build a new factory?

A common leverage ratio is for a company to have at least ________ times the amount of equity as it has debt.

Unsecured bonds are also called ________ bonds.

The amounts spent by a publishing company to pay for manufacturing its books is called ________.

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

Management should compare its budget to ________ performance every month in order to determine if the company is performing as expected.

How are capital projects financed?

Your boss asks you to email 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 email, you MOST LIKELY will attach the file named ________.

A ________ debt to equity ratio number means that a company is using ________ leverage and has ________ equity.

Gordon Jimenez' boss tells him to develop a forecast of financial needs. Of the following factors, Gordon will MOST LIKELY consider ________.

Financial statements serve as a basis for management to develop expectations of where the company will be in future periods.

A large printing plant buys millions of dollars of paper every year from suppliers. How can those suppliers help the printer with short-term financing needs?

Your school considers your tuition payments to be revenue.

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

The two divisions that make up MOST finance departments are ________.

New Fashion Stores, Inc. received 1,000 t-shirts on the first of the month. By the end of the month, the company had sold 743 shirts. The difference is ________.

A statement of cash flows reports all of the following EXCEPT ________ activities.