BM 2 1.01 Vocab-Quiz

What is an audit?

• The process of reviewing company policies

• The process of verifying financial accounts and records

• The process of marketing a product

• The process of hiring new employees

Which financial statement captures the financial condition of a business at a specific moment?

• Income statement

• Balance sheet

• Cash flow statement

• Statement of Owner's Equity

What is the primary goal of break-even analysis?

• To calculate net income

• To determine the level at which revenues equal costs

• To predict future revenue

• To analyze return on investment

What does cash flow analysis determine?

• The amount of profit a business will make

• The amount of cash a business has to work with at a given time

• The long-term financial growth of a business

• The value of assets owned by the business

What are concurrent controls?

• Mechanisms used before tasks occur

• Mechanisms used after tasks are completed

• Mechanisms used to monitor and regulate tasks as they occur

• Mechanisms used to improve employee motivation

What is the purpose of controlling as a management function?

• To motivate employees

• To manage the company's financial statements

• To monitor and guide work efforts

• To decide the company's marketing strategies

Which of the following is an example of feedback controls?

• Reviewing past performance to make future adjustments

• Setting goals before starting a project

• Creating plans for future activities

• Providing initial guidance before tasks begin

Feedforward controls are used to:

• Control tasks after they are completed

• Monitor and regulate tasks before they occur

• Correct issues after they happen

• Improve employee satisfaction

What is a financial ratio used for?

• To track employee performance

• To analyze relationships between financial data in statements

• To determine the overall health of a company's employees

• To calculate future income projections

What is the purpose of financial statements?

• To display a company's financial activities

• To provide marketing data

• To forecast future sales

• To track customer complaints