Business Management And Law Ch 8: Financial Management Test

35 Questions | Total Attempts: 103

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Business Management Quizzes & Trivia

BML Financial Management


Questions and Answers
  • 1. 
    List containing information on each customer, what they purchased, the value of the item(s) purchased, and how much they owe for each credit sale.
    • A. 

      Accounts receivable

    • B. 

      Accounts payable

    • C. 

      Long-term assets

    • D. 

      Cash records

  • 2. 
    The differences between actual and budgeted performance are known as ___.
    • A. 

      Discrepancies

    • B. 

      Shortages

    • C. 

      Overages

    • D. 

      Windfalls

  • 3. 
    Assets, liabilities, and owners' equity for a specific date are listed on a financial statement called the ___.
    • A. 

      Balance sheet

    • B. 

      Income statement

    • C. 

      Asset records

    • D. 

      Credit records

  • 4. 
    Which of these is used to keep track of the lost value of assets due to time or usage?
    • A. 

      Depreciation records

    • B. 

      Inventory records

    • C. 

      Tax records

    • D. 

      Records of accounts

  • 5. 
    Which two of these are most likely to cause a business legal problems if not kept accurately?
    • A. 

      Asset records

    • B. 

      Depreciation records

    • C. 

      Inventory records

    • D. 

      Records of accounts

    • E. 

      Cash records

    • F. 

      Payroll records

    • G. 

      Tax records

  • 6. 
    All income that a business receives over time is called
    • A. 

      Revenue

    • B. 

      Assets

    • C. 

      Expenses

    • D. 

      Liabilities

  • 7. 
    Records that identify the type and number of products on hand for sale.
    • A. 

      Inventory records

    • B. 

      Asset records

    • C. 

      Accounts receivable

    • D. 

      Accounts payable

  • 8. 
    Records that contain information on all employees, their compensation and benefits are known as ___.
    • A. 

      Asset records

    • B. 

      Payroll records

    • C. 

      Account records

    • D. 

      Inventory records

  • 9. 
    Which of these contains records of the buildings, land and equipment that a business owns?
    • A. 

      Asset records

    • B. 

      Inventory records

    • C. 

      Account records

    • D. 

      Tax records

  • 10. 
    Which ratio tells you how much the business is relying on borrowed money?
    • A. 

      Current ratio

    • B. 

      Debt to equity ratio

    • C. 

      Return on equity ratio

    • D. 

      Net income ratio

  • 11. 
    Amounts that  company will pay off within one year.
    • A. 

      Current liabilities

    • B. 

      Long-term liabilities

    • C. 

      Current assets

    • D. 

      Accounts receivable

  • 12. 
    Refers to income taxes, Social Security, Medicare, and unemployment taxes.
    • A. 

      Payroll taxes

    • B. 

      FICA taxes

    • C. 

      Luxury taxes

    • D. 

      Capital gains taxes

  • 13. 
    Which ratio tells you whether a business can pay its debts as they come due?
    • A. 

      Current ratio

    • B. 

      Debt to equity ratio

    • C. 

      Return on equity ratio

    • D. 

      Net income ratio

  • 14. 
    The costs of operating a business.
    • A. 

      Revenue

    • B. 

      Assets

    • C. 

      Losses

    • D. 

      Expenses

  • 15. 
    Cash and items that can readily be converted into cash are known as
    • A. 

      Current assets

    • B. 

      Current ratio

    • C. 

      Long-term assets

    • D. 

      Current liabilities

  • 16. 
    The main source of financial information established businesses use to prepare a budget is
    • A. 

      The company's past financial records.

    • B. 

      The Small Business Administration.

    • C. 

      The Wall Street Journal.

    • D. 

      Accountants and bankers.

  • 17. 
    If a budget contains several discrepancies, the LAST adjustment that managers should attempt is to
    • A. 

      Find ways to increase revenue.

    • B. 

      Redo the budget.

    • C. 

      Seek ways to cut expenses.

    • D. 

      Double-check their calculations.

  • 18. 
    This is an estimate of the actual money a business received and paid out for a specific period.
    • A. 

      Start-up budget

    • B. 

      Operating budget

    • C. 

      Short-term budget

    • D. 

      Cash budget

  • 19. 
    Liabilities are
    • A. 

      What a company owes.

    • B. 

      The value of the owners' investment in the company.

    • C. 

      What a company owns.

    • D. 

      What a company has on hand to sell.

  • 20. 
    All of the following are fixed assets EXCEPT
    • A. 

      Land.

    • B. 

      Inventory.

    • C. 

      Expensive technology.

    • D. 

      All of these are fixed assets.

  • 21. 
    Which of these identifies the companies from which credit purchases were made?
    • A. 

      Cash record

    • B. 

      Payroll record

    • C. 

      Accounts payable record

    • D. 

      Accounts receivable record

  • 22. 
    A company's sales and profits for a specific period are listed in the company's
    • A. 

      Income statement.

    • B. 

      Operating budget.

    • C. 

      Balance sheet.

    • D. 

      Cash budget.

  • 23. 
    Which of the following is NOT a common payroll deduction?
    • A. 

      Income tax

    • B. 

      Social Security

    • C. 

      Health insurance

    • D. 

      Unemployment tax

  • 24. 
    An earnings report includes
    • A. 

      The employee's job title.

    • B. 

      The number of sick days an employee has available.

    • C. 

      The amount of deductions for the current pay period.

  • 25. 
    A company's liabilities divided by the owners' equity is the
    • A. 

      Current ratio

    • B. 

      Debt to equity ratio

    • C. 

      Return on equity ratio

    • D. 

      Net income ratio

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