Exam 15: Financing and Tracking Business Operations

CFO Danny al Baydah believes that the best indicator of his company's financial strength is how quickly its assets can be turned into cash, or the company's ________.

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

A financial manager is responsible for ________.

Iris Velez manages a department that calculates payments to be made to federal, state, and local governments. Iris works in ________.

Assets = Liabilities + Owners' Equity is the fundamental ________ equation.

A common set of country-neutral accounting standards is known as International Financial Reporting Standards (IFRSs).

Joseph Coulter needs long-term financing for his company. He contacts Funders Group, which is willing to provide funding in exchange for an ownership stake, an active role in management of Joseph's company, and an opportunity for a large return on its investment. Funders Group is offering ________ capital.

To evaluate the best financing option, a financial manager must first match the length of the financing to the length of the need.

Financial management involves setting up and monitoring controls to make certain the plans and budgets are monitored sufficiently so that the business can reach its financial goals.

Kay Alden manages a department that prepares annual reports. Kay works in ________.

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

Your financial manager reports to you, the CEO, that your company's actual monthly financial results closely match, but not exactly match, the monthly budget. This indicates that ________.

Accounts receivable is an example of a fixed asset.

The clothing and accessories at New Fashion Stores, Inc. are an example of ________ assets.

A financial manager is sometimes referred to as a ________.

Because she believes her company has an excellent reputation for creditworthiness, corporate treasurer Lucia Diaz decides to issue ________ bonds that are not backed by any collateral.

What is debt financing?

A statement of cash flows is different than a balance sheet or an income statement because it does not reflect the amount of incoming and outgoing transactions that have been recorded ________.

Secured bonds are issued with no collateral.

When New Fashion Stores, Inc. paid a dividend to its shareholders, it recorded to outflowing cash in the ________ activities section of its statement of cash flows.