Financial Management Quiz

What should Jason avoid doing to shorten his sales cycles?

• Avoid answering objections

• Rely on other team members for product knowledge

• Always use the same sales presentation

• Improve the qualification process

While reviewing financial information, Troy noted that the company earned $245,956 in January, $248,122 in February, and $252,878 in March. Which most likely summarizes the financial situation?

• Capital assets are depreciating at a slower rate.

• Cash flow continues to be tight.

• Accounts receivable exceed accounts payable.

• Sales are steadily increasing.

A manager is most likely to use financial information for which situation?

• In determining resources available to fund a new project

• For researching the demographics of a new target market

• For calculating the number of on-the-job injuries in the past year

• In establishing lines of authority within an organization

The price of raw materials used in manufacturing a product doubled what had been projected for the year. What can the business determine by analyzing its financial information?

• Supply and demand

• Equipment costs

• Variances

• Errors in forecasting

Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. How is Emma using financial information in this situation?

• To analyze the impact of aging accounts

• To establish new quality standards and benchmarks

• To identify external economic trends

• To compare estimated performance with actual performance

During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and system. As a result, its financial information is likely to be in which condition?

• Comparable

• Consistent

• Reliable

• Conservative

Which is a way a business can use financial information?

• To identify trends

• To select selling strategies

• To conduct focus groups

• To create an economic system

A business estimates that its cash flow from sales during the upcoming season will be higher than it was for the same period last year. The estimate is possible based on this financial information and which other sources?

• Realistic goals

• Future earnings

• Potential costs

• Industry trends

Which is an example of current liabilities that a business should include in its balance sheet?

• Owner's equity

• Accounts receivable

• Employees' salaries

• Mortgage loans

By comparing the categories in an income statement, a business will be able to determine which situation?

• If it is earning too much income

• If it is paying too little for supplies

• If it is spending too much on expenses

• If it is acquiring goods for too low a price