Fc

Question 1

Refers to the overall health and stability of the company at a specific point of time

It provides a snapshot of assets, liabilities and equity, reflecting the entities ability to meet its financial obligation.

Answer 1

Financial position

Question 2

It is amount invested in the business by its owner.

Answer 2

Capital

Question 3

Summary of record in terms of increase and decrease is an entities checking account.

Normally issued by the bank to the depositor on a monthly basis .

Answer 3

Bank statement

Question 4

The standard medium of exchange and business transaction. It refers to the currency and coin which are in circulation and legal tender.

Answer 4

Money

Question 5

A special journal which is used for recording all cash receipt and all cash payment.

Answer 5

Cash book

Question 6

Financial planning tool that outlines the projected inflows and outflows of cash over a specific period, usually automatically basis.

It helps organization manage their cash flows effectively by estimating when cash will be received and when payment will be made.

To ensure that business has enough cash on hand to meet its financial obligation and operate smoothly.

Answer 6

Cash budget

Question 7

Referred to company wide budget

Answer 7

Master budget

Question 8

The process of estimating or predicting how a business will perform in the future.

It helps identity future cost and revenue trends that may influence strategic goals, policies or services in the near or long-term

Answer 8

Financial forecasting

Question 9

Is the primary goal of a business organization.

Answer 9

Generating profit

Question 10

Penalty charge for non-compliance of the condition for a health to maturity type deposit

Answer 10

Pre-termination fee

Question 11

Controller can ensure that new development within the company have a manageable impact on the larger financial picture.

This is the reason collaboration between departments is necessary.

Answer 11

Change control

Question 12

Is the minimum balance that an account holder should maintain in his or her bank account

Answer 12

Compensating balance

Question 13

Is a method of authorizing and controlling cash disbursement.

Prevents indiscriminate and an authorized purchases and incurrence of expenses

Answer 13

Voucher system

Question 14

Could be defined as formal statement of a plan presented in quantitative terms.

It serves as a barometer against which the result of the daily operations of a company are matched, coordinate, evaluated and controlled

Answer 14

Budget

Question 15

Formal managerial process that is organized by responsibility, time and information to assure that strategic planning, projected planning and operational planning are carried out regularly to enable the top management to direct and control the future of the company

Answer 15

Corporate planning

Question 16

This entails detailed plan involving acquisition of new property, plat equipment, creation of new products, modifications, acquisition or adoption of new system and acquisition of new entities

Answer 16

Capital expenditures

Question 17

Is a current asset less current liabilities. Also called the net current asset.

Answer 17

Working capital

Question 18

Control measure for both cash receipt and cash disbursement.

Under this internal measure control cash receipts are deposited intact daily to the bank.

All payments for expenses should be made by check for small amount or petty expenditures

Answer 18

Imprest system

Question 19

Financial controllers play a crucial role in an organization, overseeing financial activities and making strategic decisions to ensure the financial health of the company.

Answer 19

Long-range financial plan

Question 20

This is already a one whole year budget made but there a new budget on a monthly or quarterly basis

Answer 20

Rolling budget

Question 21

The sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.

Answer 21

Cost of labor

Question 22

Essential process for business to understand their revenue performance.

Answer 22

Sales analysis

Question 23

It refers to a period of time starting from the purchase of inventory to a collection of payment from the sale of inventory

Answer 23

Operating cycle

Question 24

It refers to the efficient and effective use of current assets and current liabilities.

Answer 24

Working capital management