PDDP FInance_Pre

What is the primary purpose of understanding finance, accounting, and tax in a company?

• To maximize profits
• To support management decision-making
• To avoid regulatory audits
• To minimize employee turnover

What does the term "Recurring vs Non-Recurring" refer to in financial analysis?

• Types of sales made by the company
• Financial impacts of specific business transactions
• Nature of business operations
• The frequency of financial statements issued

Which of the following is NOT a business process mentioned in Astra Property’s finance system?

• Marketing & Sales
• Procurement & Cost Control
• Corporate Communication
• Product Research & Development

How are "Revenue" and "Cost" different?

• Revenue includes all costs, whereas cost only includes operational costs
• Revenue refers to income after subtracting costs, while cost is an expense incurred to generate revenue
• Revenue refers to money generated after expenses, while cost refers to operational expenses
• Revenue is the total of sales, while cost refers to income taxes

What does the "Income Statement" show?

• A company’s total assets
• A company’s cash inflows and outflows
• The revenues and costs over a period, showing whether the company has profit or loss
• The company’s liabilities and equity

What is the primary purpose of the Balance Sheet?

• To calculate profitability over a period
• To show cash flow from operation
• To display the company's assets, liabilities, and equity
• To compare company performance with other firms

What does the Cash Flow Statement primarily assess?

• A company's profitability
• A company’s liquidity
• A company’s total equity
• A company’s financial stability

What is the fundamental equation behind the Balance Sheet?

• Assets = Liabilities - Equity
• Assets = Revenue + Expenses
• Assets = Liabilities + Equity
• Assets = Equity - Liabilities

What is the main advantage of financial ratios in business analysis?

• They provide a simple comparison of profit margins
• They help assess liquidity and profitability
• They are most useful when compared to time trends or peer groups
• They are useful to calculate taxes

What is the key difference between an event and a transaction in a business context?

• An event is the same as a transaction
• A transaction always leads to an event with financial consequences
• An event cannot be measured in monetary terms, while a transaction can
• An event happens due to an external factor, while a transaction is initiated by the company