Exam 14: Financial Statements Structure and Interpretation

A management team tracks the effectiveness of its decisions and product/service offerings with respect to growth,profitability,and asset productivity by analyzing its commercial invoices.

All of the following are steps in the forecasting and budgetary process,EXCEPT:

Financial Solvency is a general term which relates to an organization's cash reserves and borrowing power

All of the following are ways that NFPs generate the dollars needed to sustain their charitable and community-based mission,EXCEPT:

The ability of the organization to control its costs and maintain its operating margin is tracked by managers' analysis of financial statements.

Leverage Analysis is where we look at the specific dollar amount of financial resources available.

Proportional Analysis is the process by which we assess and interpret the relationships between the financial results shown on an organization's financial statements.

With respect to Financial Statements,managers generate the clearest picture of what is happening within an organization by reviewing ________.

Financial Efficiency is a general term which relates to an organization's cash reserves and borrowing power

Net income = expenses - revenues + taxes is equivalent to the accounting equation?

A management team tracks the effectiveness of its decisions and product/service offerings with respect to growth,profitability,and asset productivity by analyzing its financial statements.

Development of pro-forma statements is a step in the forecasting and budgetary process.

The ability of the organization to control its costs and maintain its profitability margin is tracked by managers' analysis of financial statements.

_____ refers to the ability of the company,on the basis of the cash it has on hand and the cash it is generating within its operations,to meet its ongoing financial obligations.

Profitability is an issue that Not-for-profit (NFP) managers must manage.

Current asset transactions are decisions which managers make with respect to investment and divestment of capital assets (buildings, equipment, business subsidiaries) which may be needed, or are no longer needed.

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a balance sheet.

The role of the senior management team is to determine an organization's overall direction and then give orders and operate the execution of the tactics and strategic thrusts.

statements to determine its anticipated profitability position.

Efficiency refers to a longer-term assessment of the financial stability of the organization.