POB 6.02
Disclose information
One significant purpose of the notes to the financial statements is to
In line with organizational priorities
The finance function ensures that the company's financial goals are
Budgeting
The finance function is usually responsible for which of the following processes:
Working capital management
A company's current balance of assets and liabilities falls under the focus of
Investments
The administration of assets refers to decisions about
As short as possible
The cash conversion cycle should be
New business projects and strategies
The finance function would definitely be involved in a decision regarding
Reduce risks
The goals of the finance function are to ensure profitability and to
Information systems
To keep communication flowing with other departments, the finance function depends on
Liabilities plus equity
To make the balance sheet "balance," assets must equal
Financial situation
When Jack examines the balance sheet of a company, he sees a "picture" of the company's
Profitability
When Paula examines the income statement, she sees the company's
Growing in value
When return on capital is positive, the company is
How to finance investments
Which of the following is a capital investment decision:
Cash conversion cycle
Which of the following is a key component of managing working capital:
Return on capital
Which of the following is a measure of how well a business generates cash flow:
Revenues
Which of the following is not an expense represented on the income statement:
Incomplete
Without the notes, the financial statements are considered
Acquisition of funds
Decisions about financing refer to the
Recordkeeping activities
Accounting is distinct from finance because its main focus is on
Capital budgeting
Determining which projects a business should invest in is known as
Accounts receivable
Money owed to the business is known as
Accounts payable
Money the business owes is known as
Buildings
On the balance sheet, the property and equipment category includes
Arrives
On the cash flow statement, incoming cash is "counted" when it
Equity
Assets a company already owns and can use to finance a new venture are called
Money
Finance is the business function that involves managing
Where the firm's money went
From the cash flow statement, an investor can determine
It plans and controls spending
How does the finance function relate to company spending?
Net income
On the income statement, which of the following represents the overall excess or shortage for the year:
