D076 OA ACTUAL QUESTIONS WITH VERIFIED

D076 OA (ACTUAL / ) QUESTIONS WITH VERIFIED

ANSWERS

What are the three things one must determine before making a personal budget?

Expenses, interest payments, and savings

Tax liabilities, expenses, and income

Liabilities, income, and expenses

Income, expenses, and savings - ----Answers---Income, expenses, and savings

A firm had sales of $100,000 this month. However, the firm received only $90,000 in cash from sales. Why would the firm receive $10,000 less cash than its monthly sales?

Because the firm purchased inventory on credit this month

Because the firm paid cash for inventory purchased

Because the firm paid down $10,000 on a loan 1 / 4

Because the firm did not make all sales on cash - ---- Answers---Because the firm did not make all sales on cash

What three things should an individual or company be doing so that their budget is effective and so that they are on track to meet their financial goals?

Monitor cash flows, reduce variable costs, and track expenses

Revise the budget, categorize investments, and track income

Track cash flows, monitor cash flows, and revise the budget

Reduce variable costs, account for income, and monitor outstanding loans - ----Answers---Track cash flows, monitor cash flows, and revise the budget

What is the envelope method of budgeting?

Using a spreadsheet to track both your digital and physical expenditures of cash during the month

Withdrawing cash at the beginning of the period and then allowing only a certain amount to be available for each category of spending 2 / 4

Paying all expenses during the month by check through the physical mailing system to ensure that obligations are met in a timely manner

Tracking your credit and debit expenditures by updating and categorizing purchases that appear on your bank statement - ----Answers---Withdrawing cash at the beginning of the period and then allowing only a certain amount to be available for each category of spending

What are long-term financial forecasts used for?

Cash budgeting

Determining short-term operating needs

Developing savings, income, and expense strategies

Making investment and financing decisions - ----Answers--- Making investment and financing decisions

Which type of account does not vary with sales and is left to management's discretion?

Fixed assets accounts 3 / 4

Accounts receivable accounts

Spontaneous accounts

Non-spontaneous accounts - ----Answers---Non- spontaneous accounts

Which account is a discretionary account?

Fixed assets

Accounts receivable

Notes payable

Cash - ----Answers---Notes payable

What is the rate at which a firm can grow without issuing new equity?

Discount rate

Internal rate of return

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