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WorksheetsUnit 1/ 1.02 Fin Plan
Total questions: 20
Worksheet time: 40mins
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
Pay stub
School-loan document
Sales receipt from purchasing a new mattress
Which of the following activities is part of accounting:
Creating financial information
Developing marketing campaigns based on financial information
Gathering financial information
Making decisions based on financial information
Which of the following is a type of financial statement that accountants prepare for a business:
Sales Invoice
Balance sheet
Credit-Card Statement
Bank-deposit slip
Useful financial information is understandable to
anyone who needs to use it.
anyone with a background in finance.
accountants and managers.
everyone.
For financial information to be relevant, it must also be
certified by an auditor
timely
digital
perfect
For financial information to be reliable, it must also be
understandable
complete
relevant
biased
If an accountant wants to prepare reliable financial reports, s/he must be
neutral
certified
partial
supervised
GAAP is a system that provides accountants with
the newest technology
acceptable procedures
networking opportunities
professional development
For financial information to be comparable, it must also be
current
private
consistent
digital
There may be more than one acceptable way to record and organize a piece of financial information, but it’s important to
keep all paper copies of receipts
create your own set of accounting standards
make sure competitors dont find out about it
do it the same way every time
In business, the most important application of financial information is
getting to know the target market.
trend identification.
determining salaries.
managerial decision making.
A manager looks at financial information and sees that the company could save money
by switching to a different Internet provider. This is an example of using financial information to
reduce expenses
create a budget
increase sales
plan business expansion
A manager looks at financial information to see if the company can afford to purchase a
popular new item it wants to add to its shelves. This is an example of using financial information to
manage debt
increase sales
check up on the competition
reduce expenses
Managers use financial information to create and adjust
accounting standards
budgets
mission statements
trends
A business’s managers decide to use some surplus cash to pay off a loan early. This is an example of using financial information to
manage debt
make purchases
increase sales
create budgets
A business’s managers sign a legal agreement to provide services to another business. Before signing, they go over financial information to ensure the payment terms are acceptable. This is an example of using financial information to
enter into contracts
boost profitability
increase sales
make purchases
A business’s managers expected to reduce expenses by four percent last quarter. The financial information, however, shows that expenses were actually reduced by two percent. This is an example of
profitability
acquisition
variance
trend
Which of the following is a reason that managers might look at financial information from another company:
To determine how to increase sales
To monitor their company's ongoing business operations
To manage their company's debt
To see how their company compares to the competition
Which of the following groups of people would be most interested in using financial information for trend identification:
Auditiors
Investors
Customers
Employees
