Other

Question 1

What is true about the inverted pyramid writing style?

Answer 1

The most important information is placed at the beginning of the document to ensure it is read right away.

Question 2

True/False

Most memos will have a conversational style—slightly informal but still professional.

Answer 2

True

Question 3

The direct organization strategy for organizing memos presents the _____ of the document in the first paragraph and provides supporting details in the body ____ or a courteous closing statement is placed in the last paragraph.

Answer 3

purpose, action information

Question 4

True/False

The goal of a memo is to communicate clearly and concisely at all levels with no ambiguity.

Answer 4

True

Question 5

What is the main difference between a business letter and other types of letters?

Answer 5

Business letters are a legal document.

Question 6

Top 3 skills lacking in today’s accounting and finance professionals—survey of CFOs:

Answer 6

General business knowledge,
Information technology,
Communication skills

Question 7

Five core communication skills according to the

Answer 7

Writing, 
Oral presentations, 
Reading and critiquing written  work, 
Listening, 
Understanding personal dynamics

Question 8

Which communication skill does the Securities & Exchange Commission (SEC) recommend to accountants for “good writing”?

Answer 8

Active voice

Question 9

What are primary considerations when selecting the format of accounting information?

Answer 9

This is a secondary consideration that you make after you have determined your purpose, audience, and level of detail of the information.

Question 10

The three primary financial statement performance objectives of every business are:

Answer 10

solvency, liquidity, and profitability.

Question 11

Define Solvency

Answer 11

is the ability of a company to pay its debts as they come due

Question 12

How is solvency measured?

Answer 12

Solvency is measured by analyzing the balance sheet.

Question 13

Define Liquidity

Answer 13

Liquidity measures how soon a company can convert assets to cash to pay liabilities as the come due.

Question 14

Define Profitability

Answer 14

Profitability is the ability of a company to generate income

Question 15

How is profitability measured?

Answer 15

Profitability is measured by analyzing the company’s income statement.

Question 16

What is financial statement analysis?

Answer 16

applying analytical tools and techniques to financial statements and other relevant data to obtain useful information. This analysis reveals significant relationships between data and trends in those data that assess the company’s past performance and current financial position

Question 17

Absolute increases and decreases for an item from one period to the next and percentage increases and decreases for an item from one period to the next, make use of ______ _____ _____.

Answer 17

Comparative financial statements

Question 18

_________ financial statements present the same company’s financial statements for one or two successive periods in side-by-side columns.

Answer 18

Comparative

Question 19

Vertical analysis

Answer 19

Vertical analysis consists of the study of a single financial statement in which each item is expressed as a percentage of a significant total such as sales

Question 20

Common sized statements

Answer 20

Financial statements that show only percentages and no absolute dollar amounts

Question 21

Ratios

Answer 21

expressions of logical relationships between items in the financial statements of a single period.