Closing Thoughts
• William Arthur Ward: Wise are those who learn that the bottom line doesn’t always have to be their top priority.
• W. Clement Stone: Try, try, try, and keep on trying is the rule that must be followed to become an expert in anything.
• Colin Powell: There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
PRE-ASSESSMENT
1) What is the role of CFO?
a) They use financial data to steer the organization to the strategic vision, mission, and goals of the organization
b) They ensure that the financial data is accurate and create reports. In addition, they analyze the information and help the CEO make decisions
c) They use financial data to control budgets of several departments and business units
d) They use financial data to manage their areas or business units
2) What is the role of board of directors?
a) They use financial data to determine how well the organization is doing and hold leaders accountable for meeting budgets and other obligations
b) They use financial data to determine if they want to purchase stocks in hopes of a financial return
c) They use financial data to determine if the company is capable of paying back a new or current loan
d) They collect financial data and record them daily in computer systems for compiling at the end of the month
3) What does the annual report provide?
a) A comprehensive report on the financial activities of the past year of an organization
b) A comprehensive report on an organization’s annual financial profit
c) A comprehensive report on an organization’s annual financial outcome
d) A comprehensive report on an organization’s overall actions
4) Which of the following IS NOT a component of the annual report?
a) Auditor’s report
b) Income statement
c) Accounting policies
d) CFO’s report
5) Why is using the long-term analysis helpful?
a) Because it shows the real current financial situation
b) Because it can determine an organization’s future financial performance
c) Because it can solve an organization’s financial problems
d) Because it can definitely prevent financial damages
6) Why is calculating the Return on Investment helpful for the job?
a) Because it can practically make a financial decision instead of you
b) Because it can show the efficiency of an investment
c) Because it is absolutely reliable way for preventing the investment to fail
d) Because it will make you look wiser and more dedicated
7) Which of the following is not a common type of budget?
a) Project budget
b) Cash flow/Cash budget
c) Private budget
d) Marketing budget
8) Which of the following IS NOT necessary information for starting a budget?
a) Money
b) Goal
c) Cost
d) Means
9) Which of the following IS NOT an area that a budget team should necessarily include?
a) Sales
b) Accounting
c) Human resources
d) Top administration officials
10) Who gives the approval of the final budget?
a) CEO
b) Board of Directors
c) CFO
d) The manager
11) When it comes to computer programs, they usually:
a) Make things more complicated
b) Mix up the data
c) Make things easier and more efficient
d) Do the half of the work automatically
12) Which of the following statements IS NOT true?
a) The budget is a guide and should be regarded as flexible
b) The budgets are unstable and some special circumstances always occur
c) The budget should not be changed randomly or whenever something happens
d) If the contingent funds are not used by the end of the budget period, it should be returned to the organization
13) Which of the following statements is true?
a) Any kind of forecasting technique is a guarantee for success
b) Some of the forecasting techniques are a guarantee for success
c) No technique is a guarantee, but using a standard tool is helpful
d) None of the above
14) Which of the following is not a formal financial model?
a) Profitability index
b) Equivalent annuity
c) External rate of return
d) Internal rate of return
15) Which of the following statements is true?
a) Giving other individuals responsibility over certain areas of the budget is not reliable procedure
b) Giving other individuals responsibility over certain areas of the budget is helpful
c) Giving other individuals responsibility over certain areas of the budget relieves you from responsibilities
d) Giving other individuals responsibility over certain areas of the budget can make things complicated
16) Which of the following IS NOT an external economic or regulatory situation?
a) Strike
b) New Laws
c) Shortages
d) Recession
17) Which of the following IS NOT among the 10 questions you have to ask yourself before purchasing a decision?
a) Make or buy it?
b) Lease or buy it?
c) Is this item going to reduce my workload?
d) Can you do without the item?
18) Which of the following is an Internet market?
a) EBay
b) EBoy
c) EBuy
d) Ebey
19) Which of the following IS NOT something you need to know as a manager?
a) What does a certain law require
b) Why a certain law exists
c) How you factor into the situation
d) How to use legal remedies
20) When the laws aren’t followed, the company usually:
a) Tries to cover it up and fix the situation as soon as possible
b) Suffers severe consequences
c) Waits for extreme consequences and then reacts
d) None of the above