IT Management Slideshow: Quiz: How Well Do You Speak CFO?

By Dennis McCafferty  |  Posted 03-22-2011

What is this?

This practice is designed to ensure that information presented -- such as that to business officers -- is true.

What is this?

Answer

Due diligence. Warning: We start you out with an easy one here.

Answer

What is this?

An accounting mechanism that provides information needed to determine how much it costs a company to produce its products.

What is this?

Answer

Standard cost system

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What is this?

The "Three Cs of Credit."

What is this?

Answer Capacity, Collateral, Character.

These are traditional criteria used by bankers to evaluate a loan application.

Answer Capacity, Collateral, Character.

What is this?

A financial statement that incorporates information other than actual accounting information.

What is this?

Answer

Pro forma statement

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What is this?

This concept requires a company to rethink and reevaluate how it conducts business, often outsourcing low-priority resource-consuming activities to concentrate on core competencies.

What is this?

Answer

Zero-based budgeting

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What is this?

A loan with no fixed maturity.

What is this?

Answer

Demand loan. This means the lender may demand funds from borrower without notice or reason.

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What is this?

This finance and banking term means 1/100th of one percent.

What is this?

Answer

Basis point

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What is this?

This finance and banking term means 1/100th of one percent.

What is this?

Answer

Retained earnings

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What is this?

The minimum ROI that a business requires before it will approve a capital expenditure proposal.

What is this?

Answer

Hurdle rate

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What is this?

This ratio assists management in assessing the company's liquidity position.

What is this?

Answer

Quick ratio. For the record, that ratio is cash plus marketable securities plus accounts receivable divided by accounts payable plus bank debt. Bet you already knew that, right?

Answer