Exam 14: Financial Statements Structure and Interpretation

Operational transactions represent the flow of money within the organization which is directly related to long-term business dealings.

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

Solvency 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.

Market analysis is a step in the forecasting and budgetary process.

generate the dollars needed to sustain their charitable and community-based mission.

One of the fundamental types of business transactions that managers are constantly making decisions about and reviewing is:

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

One of the fundamental types of business transactions that managers are constantly making decisions about and reviewing is credit transactions.

Liquidity 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.

Trend Analysis is the process of assessing the impact of the amount of debt which an organization has incurred in order to finance its asset base.

Although Capital Asset Transaction do not directly related to the current year's profit of the organization,they do impact on the _______ of the organization over the period of time.

generate the dollars needed to sustain their charitable and community-based mission.

One of the fundamental types of business transactions that managers are constantly making decisions about and reviewing is:

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

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

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

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

The ability to acquire additional capital resources is considered in an organization's solvency analysis.

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

Revenues - expenses = net income is equivalent to the accounting equation?