Exam 15: Financing and Tracking Business Operations

The strategic planning and budgeting of short- and long-term funds for current and future needs is called ________ management.

You are a financial manager. Your assistant tells you that there will be a cash flow gap next month, meaning that cash outflows are expected to be ________ cash inflows.

FASB stands for ________.

Government and not-for-profit accounting refers to the accounting required for organizations that are not focused on generating a profit, such as legislative bodies and charities.

Short-term liabilities are also known as ________ liabilities.

Funds that a manager can access at any time up to an amount agreed upon between the bank and the company are called a line of ________.

How does financial management compare to other business activities?

Housing Repair Co. has total revenue of $100,000. COGS is $40,000. Operating expenses are $10,000. The company's operating profit margin is ________.

A commercial finance company is an alternative to a bank as a source of short-term financing.

Demand deposits include ________ accounts.

The statement of cash flows tells how efficiently management generates and uses cash.

Because BackBeatMusic.com's current assets are less than its current liabilities, the company has positive working capital.

What does an income statement show?

The amounts that New Fashion Stores, Inc. owes to clothing manufacturers are an example of ________.

Tracking a business's income and expenses through a process of recording financial transactions is called ________.

Leverage is the amount of debt used to finance a firm's assets.

If a startup company cannot get a loan and does not want to use venture capital, what is another method it could try for raising equity?

Laureen Cooley is preparing a spreadsheet that shows inventory, sales, purchases, manufacturing, and marketing costs for her organization. This document is called a(n)________ budget.

A highly efficient company and potential good investment must have a high earnings per share ratio.

As a financial manager, you decide to borrow funds in order to meet payroll. Your company will pay back the funds within nine months. You are seeking ________ financing.