BMII 5.01 Financial Info Review

Which of the following is an example of personal financial information:

• Sales invoice

• Expense report

• Accounts payable record

• Pay stub

Which of the following is an example of business-related financial information:

• Accounts receivable record

• School-loan document

• Pay stub

• Sales receipt from purchasing a new mattress

In its raw state, financial data aren’t very helpful. To be useful to businesses, financial data need to be

• formatted in HTML.

• inserted into a spreadsheet.

• gathered and organized in some way.

• listed in order of size from smallest to largest.

Useful financial information is understandable to

• anyone who needs to use it.

• accountants and managers.

• anyone with a background in finance.

• everyone.

“Jargon” is a term used to describe specialized language that is known only by a specific group of people. Based on this definition, financial information that contains jargon would

• not be considered relevant.

• be considered complete.

• not be considered understandable.

• be considered neutral.

For financial information to be relevant, it must also be

• certified by an auditor.

• digital.

• timely.

• perfect.

A business wants to purchase new machinery for its production line. Which of the following pieces of financial information would be most relevant for their purchase decision:

• The amount of money left in the budget for the fiscal year

• How much money the company spent on machinery five years ago

• The amount of money spent by a competing company on production line equipment

• The current salaries of top company executives

For financial information to be reliable, it must also be

• understandable.

• relevant.

• complete.

• biased.

If a business wants to prepare reliable financial reports, it must be

• neutral.

• partial.

• certified.

• supervised.

Financial information that is ___________ conforms to specific processing standards.

• understandable

• relevant

• reliable

• comparable