Finance for non finance managers

Which of the following statement is correct regarding the Asset?

• a. Identifies the net worth of the business

• b. Any resource that holds economic value

• c. A company’s income

• d. All of the above

2. __________ accounts record expenses necessarily incurred to run the business.

• a. Purchases accounts

• b. Sales accounts

• c. Overhead accounts

• d. Fixed Asset accounts

. What is the capital account?

• a. Accounts that record investments into the business.

• b. Accounts that record investment in long-lasting items.

• c. Accounts that record sales of the goods sold on credit to customers.

• d. Accounts that record the goods purchased for onward sales to customers

Which of the following is/are the financial statement(s) every business has to issue yearly or quarterly?

• Profit and Loss Statement

• Balance Sheet

• Cash Flow Statement

• All of the above

Is the following statement true or false?

A balance statement shows the company’s net worth at a single moment.

• True

• False

If the total liability of a company is £50,000 and Equity Total is £33,000. What will be Total Assets?

• £46

• £83,000

• £330

• £23,000

Which of the following budgeting adds a specified amount into the previous budget?

• Incremental budgeting

• Zero-based budgeting

• Imposed budgeting

• Value proposition budgeting

Which of the following strength of Zero-based budgeting is incorrect?

• Funds allocated based on demand

• Avoids unnecessary spending

• Encourages cost-effective measures

• Simple to implement

Which of the following statement(s) is/are correct about liabilities?

• Liabilities are also divided into current and long-term.

• Current Liabilities are usually payments due within one year and are listed in priority order.

• . Long-term liabilities include any payment that is due after a year.

• All of the above

Which of the following analysis is known as time-series analysis?

• Trend Analysis

• Common-Size Financial Statement Analysis

• Percentage Change Financial Statement Analysis

• Benchmarking