Worksheets1.02 Financial Planning I
Total questions: 10
Worksheet time: 5mins
When Alana prepares a report so that all financial data is clearly disclosed, she is ensuring that the information is:
flexible.
relevant.
timely.
transparent.
A manager is most likely to use financial information when:
establishing lines of authority within an organization.
researching the demographics of a new target market.
determining resources available to fund a new project.
calculating the number of on-the-job injuries in the past year.
Which is a way that businesses can use financial information?
to identify trends
to conduct focus groups
to select selling strategies
to create an economic system
Useful financial information is understandable to
anyone who needs to use it
accountants and managers
anyone with a background in finance
everyone
“Jargon” is a term used to describe specialized language that is known only by a specific group of people. Based on this definition, financial information that contains jargon would
not be considered relevant
be considered complete
not be considered understandable
be considered neutral
For financial information to be reliable, it must also be
understandable
relevant
complete
biased
For financial information to be comparable, it must also be
current
consistent
private
digital
In business, the most important application of financial information is
getting to know the target market
determining salaries
trend identification
business decision making
Which of the following is a reason that businesses might look at financial information from another company:
To determine how to increase sales
To monitor their company’s ongoing business activities
To manage their company’s debt
To see how their company compares to the competition
Businesses use financial information to create and adjust
accounting standards
mission statements
budgets
trends
