Business Certifications Business Certifications Financial Management & Budgeting 2

Question 1

What does EBITDA stand for?

Accepted Answer

Earnings Before Interest, Taxes, Depreciation, and Amortization

Answer

Estimated Budget Including Tax, Dividends, and Allowances

Answer

Equity-Based Income Tax Deduction Amount

Answer

Earnings Before Income Tax Divided by Assets

Question 2

In financial forecasting, a "rolling forecast" means:

Accepted Answer

A forecast that is continuously updated to cover a fixed future horizon

Answer

A forecast that covers only the current fiscal year

Answer

A forecast based solely on historical averages

Answer

A forecast that rolls unused budget into the next period

Question 3

Accounts payable in financial management refers to:

Accepted Answer

Money the company owes to its suppliers for goods or services received

Answer

Money owed to the company by its customers

Answer

Long-term loans from financial institutions

Answer

Dividend payments owed to shareholders

Question 4

A company's gross profit is calculated as:

Accepted Answer

Revenue minus cost of goods sold (COGS)

Answer

Net sales minus total operating expenses

Answer

Operating income minus interest expense

Answer

Total revenue minus all taxes owed

Question 5

What is the primary purpose of a financial audit?

Accepted Answer

To provide an independent assessment of financial statement accuracy

Answer

To create a new budget for the upcoming fiscal year

Answer

To negotiate new contracts with vendors and suppliers

Answer

To forecast future revenue growth for strategic planning

Question 6

Depreciation in accounting represents:

Accepted Answer

The systematic allocation of an asset's cost over its useful life

Answer

The increase in an asset's market value over time

Answer

The market value decline of inventory due to inflation

Answer

The write-off of uncollectible customer debts