IT Management Slideshow: Quiz: How Well Do You Speak CFO?
By Dennis McCafferty | Posted 03-22-2011What is this?
This practice is designed to ensure that information presented -- such as that to business officers -- is true.
Answer
Due diligence. Warning: We start you out with an easy one here.
What is this?
An accounting mechanism that provides information needed to determine how much it costs a company to produce its products.
Answer
Standard cost system
What is this?
The "Three Cs of Credit."
Answer Capacity, Collateral, Character.
These are traditional criteria used by bankers to evaluate a loan application.
What is this?
A financial statement that incorporates information other than actual accounting information.
Answer
Pro forma statement
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.
Answer
Zero-based budgeting
What is this?
A loan with no fixed maturity.
Answer
Demand loan. This means the lender may demand funds from borrower without notice or reason.
What is this?
This finance and banking term means 1/100th of one percent.
Answer
Basis point
What is this?
This finance and banking term means 1/100th of one percent.
Answer
Retained earnings
What is this?
The minimum ROI that a business requires before it will approve a capital expenditure proposal.
Answer
Hurdle rate
What is this?
This ratio assists management in assessing the company's liquidity position.
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?
