Business Certifications Financial Management & Budgeting Flashcards
6 cards from real Business Certifications practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business Certifications Financial Management & Budgeting flashcards as text
What does ROI stand for in a business context?
Answer: Return on Investment
ROI (Return on Investment) measures the profitability of an investment relative to its cost.
Which financial statement reports a company's revenues, expenses, and profit over a specific period?
Answer: Income Statement
The income statement (also called the profit and loss statement) reports revenues, expenses, and net profit over a defined period.
A budget variance is best described as:
Answer: The difference between budgeted and actual amounts
Budget variance is the difference between the planned (budgeted) amount and the actual amount spent or earned.
What is zero-based budgeting?
Answer: A budget built from scratch each period, requiring justification for every expense
Zero-based budgeting requires managers to justify every expense from zero each budget cycle rather than using prior period figures as a baseline.
Which ratio measures a company's ability to pay its short-term obligations?
Answer: Current ratio
The current ratio (current assets divided by current liabilities) measures a company's liquidity and short-term debt-paying ability.
Capital expenditures (CapEx) refer to:
Answer: Funds used to acquire or upgrade long-term physical assets
Capital expenditures are funds a company uses to acquire, upgrade, or maintain long-term physical assets such as equipment or property.