#1
In financial accounting, what does ROI stand for?
Return on Investment
ExplanationMeasure of profitability relative to investment.
#2
Which financial ratio measures a company's ability to meet its short-term obligations with its most liquid assets?
Current Ratio
ExplanationIndicator of short-term liquidity.
#3
What is the primary purpose of a cost-benefit analysis in decision-making?
To assess the financial impact of a decision
ExplanationWeighing pros and cons economically.
#4
What does the acronym GAAP stand for in accounting?
Generally Accepted Accounting Principles
ExplanationStandardized accounting rules.
#5
In financial accounting, what is the purpose of the cash flow statement?
To track the movement of cash into and out of a business
ExplanationMonitoring cash inflows and outflows.
#6
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Balance Sheet
ExplanationOverview of assets, liabilities, and equity.
#7
What is the primary purpose of a decision tree in decision analysis?
To represent sequential decisions visually
ExplanationVisualize decision-making processes.
#8
What is the purpose of variance analysis in managerial accounting?
To analyze the differences between planned and actual results
ExplanationAssessing deviations from forecasts.
#9
In decision-making, what does the term 'sunk cost' refer to?
Costs that have already been incurred and cannot be recovered
ExplanationExpenses already invested.
#10
Which accounting principle states that you should record expenses and liabilities as soon as possible, but revenues and assets only when assured of their realization?
Conservatism Principle
ExplanationErring on the side of caution in financial reporting.
#11
In financial modeling, what does the term 'DCF' stand for?
Discounted Cash Flow
ExplanationValuing future cash flows in today's terms.
#12
What is the concept of the time value of money in finance?
The idea that a sum of money today is worth more than the same sum in the future
ExplanationMoney's potential to earn interest over time.
#13
In information systems, what does the term 'normalization' refer to?
Breaking down complex data structures into simpler forms
ExplanationStreamlining data organization.
#14
What is the primary goal of financial management in an organization?
Maximizing shareholder wealth
ExplanationIncreasing stockholders' value.
#15
In information security, what does the acronym 'VPN' stand for?
Virtual Private Network
ExplanationSecure network connection.
#16
What is the purpose of a SWOT analysis in business decision-making?
To evaluate a company's internal strengths and weaknesses
ExplanationAssessing internal capabilities and limitations.
#17
In information systems, what is the function of an ERP (Enterprise Resource Planning) system?
To manage and integrate core business processes
ExplanationCentralizing business operations.