Marketing Applications Unit 2 Review

What should be avoided to shorten a sales cycles?

• Avoid answering objections

• Rely on other team members for product knowledge

• Always use the same sales presentation

• Improve the qualification process

Credit card statements, bank deposit slips, and pay stubs are all examples of which type of financial information?

• personal financial information

• business financial information

Which of the following is NOT one of the characteristics of useful financial information?

• Dependable

• Relevant

• Understandable

• Comparable

When a user receives financial information, s/he should be able to safely assume that the information is

• accurate

• timely

• half way done

• relevant

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

What is cash flow?

• The money a company generates

• The movement of funds into and out of a business

• The amount of money being paid out for employee salaries

• The transferring of money to different departments

Which is NOT a source of cash flowing INTO a business?

• Cost of goods

• Sale of assets

• Loans

• Start-up money

Paying taxes is an example of cash that would be flowing out of a business.

• True

• False

Calculate the cash flow by using the following piece of information from a cash flow statement. Beginning cash balance of $2400, Total cash receipts of $19,375, Rent, $1500, Advertising $1000, Total cash paid out $10,400, and Ending cash balance $11,375.

• $8,000

• $8,975

• $900

• $21,775

Why is an income statement useful to a business?

• it helps predicts how sales will be in the following year

• it shows a business which employees were the most productive

• it tells a business where its money came from and where it went

• it explains how much money should be allocated per department