Study guide

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

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

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

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

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

Why would a company need a flow of money?

• To borrow

• To exist

• To sell

• To invest

What are the categories that a business uses to summarize

information on their balance sheets?

• Cash, budget, and credit

• Equity, budget, and cash

• Liabilities, equipment, and sales

• Assets, liabilities, and equity

An established business receives its primary flow of money from which source or sources?

• Loans

• Credit

• Fees

• Sales