Financial Management Quiz

What is the theory and system of setting up, maintaining, and auditing the financial books of a firm called?

• Budgeting

• Accounting

• Forecasting

• Auditing

What is a detailed financial statement of one segment of a business over a period of time called?

• Budget Schedule

• Cash Flow Statement

• Income Statement

• Financial Report

What is the contribution margin per unit?

• The total revenue divided by the number of units sold

• The total contribution margin divided by the number of units sold

• The total cost of goods sold divided by the number of units sold

• The total net income divided by the number of units sold

What is financial accounting?

• A summary of a company's marketing strategies

• Reports that follow GAAP and provide a financial summary of an organization's activities

• A detailed report of a company's human resources activities

• A summary of a company's operational procedures

What is a financial statement?

• A statement of a company's marketing strategies

• A statement of the financial position of a business on a specified date or for a period of time

• A statement of a company's employee performance

• A statement of a company's production processes

What is forecasting in financial terms?

• Predicting the weather for business operations

• Predicting the sales of goods or services based on historical data

• Predicting employee performance

• Predicting the outcome of marketing campaigns

How is gross profit margin calculated?

• By dividing the net income by the total sales

• By dividing the gross profit by the total sales

• By dividing the total expenses by the total sales

• By dividing the cost of goods sold by the total sales

What does an income statement represent?

• A company's marketing strategies

• Whether a business is earning money (net income) or losing money (net loss)

• A company's employee performance

• A company's production processes

What is managerial accounting?

• A branch of accounting that provides information to external stakeholders

• A branch of accounting that provides accounting information to managers within organizations

• A branch of accounting that focuses on tax preparation

• A branch of accounting that deals with auditing

What is the purpose of GAAP?

• To establish rules for marketing strategies

• To establish rules, conventions, standards, and procedures for reporting financial information

• To establish rules for employee performance evaluations

• To establish rules for production processes