Multiple Choice Flashcards
Signifies the firm’s capacity to meet its current financial obligations using its current assets
Current ratio
Signifies the firm’s capacity to meet its financial obligation using its quick assets
Current ratio
Ratio that gauge liquidity
Current ratio
Ratio used to gauge firms efficiency in the use of its assets
Average collection period
Ratio used to gauge efficiency in the use of its debts
Equity to debt ratio
Are relationships determined from a company’s financial information and used for comparison purposes
Financial ratios
Is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as balance sheet and income statement
Financial ratio analysis
Classification of ratios used to gauge the capacity of the firm to meet its current financial obligations
Liquidity ratios
Classification of ratios used to gouge the capacity of the firm to generate returns from the use of its resources
Profitability
Documents used in computing financial ratios
Financial statements
A formal systematic managerial process that is organized by responsibilities time and information to assure that all other types of planning acre carried out regularly to enable top management to direct and control the future of the firm
Corporate planning
Creation of strategies that are aimed at maximizing the firm’s future position taking into consideration that various elements and factors that may be provide the firm’s internal and external environment
Strategic planning
Also called capital expenditures planning
Project planning
Concerned on how to efficiently and effectively utilize the firm’s resources to achieve the company’s short-term and long-term objectives already set up
Operational planning
Involves quantifying the plans in terms of monetary value
Budgeting
Under this method of forecasting sales each salesman estimates the sales in his particular territory
Sales force ….
Under this method of forecasting sales the view of a number of top executives are culled to arrive at the sales estimate
executive Opinion
Under this method of forecasting sales the combination of various methods of forecasting is used
Multiple approach
Is a budget which may be done on a monthly or quarter basis out of the budget for the year
Rolling budget
Objective of budgeting which provides a yardstick against which the firm can measure and compare the budgeted amount and actual results of operations
Control
A formal, systematic managerial process that is organized by responsibilities, time and information to ensure that all planning types can be carried out
Corporate planning
Creation of strategies that are aimed at maximizing the firm’s future position into during the elements and practice in the firm’s internal and external environment
Strategic planning
Also called capital expenditures planning
Project planning
Concerned with how to efficiently and effectively utilize the firm’s resources to achieve the firm’s objectives
Operational planning
Involves quantifying the plants in terms of monetary value
Budgeting
Under this method in the product life cycle is used in making the sales forecast
Sales trend analysis
Under this method is salesman estimates the sales in his particular territory
Sales force composite method
A more scientific means of forecasting sales
Correlational analysis method
Relationship between expected sales of the company in terms of market share
Industry trend analysis method
The view of a number of top managers are culled to arrive at a sales estimate
Executive opinion method
Represents the remaining cash collection of the day waiting to be deposited the next banking day
Cash on hand
Represents cash already deposited in the bank
Cash in bank
An account where the money deposited will earn interest income for the meantime while it is not yet used
Saving account
Sometimes called demand deposit
Current account
Savings and current accounts in one bank account
Combo account
The fund that has to be maintained under the imprest system of handling cash
Cash fund
Short-term and highly liquid investments readily convertible to cash
Cash equivalent
Risk built in every organization
Inherent risk
Risk associated with the use of technology
Systems risk
Receipt used by collectors
Provisional receipt
Receipt used by the cashier upon receipt of cash
Official receipt
Summary of collection made by the collector for the day
Daily collector’s remittance form
Disappointing collection from one customer and concealing this defalcation by applying a subsequent collection made from another customer
Lapping
Happens when a check is drawn from one bank and is deposited to another bank at end of the month of year
Lapping
