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Capacity refers to the ability of the company,on the basis of the cash it has on hand and the cash it is generating within its operations,to meet its ongoing financial obligations.

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Operational transactions represent the flow of money within the organization which is directly related to quarterly business dealings.

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The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the profit-loss statement.

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The role of the senior management team is to determine an organization's overall direction and then dictate and govern the execution of the tactics and strategic thrusts.

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The financial statement that represents an accumulation of all of a company's transactions since it began is the


A) income statement.
B) balance sheet.
C) annual report.
D) budget.
E) statement of cash flow.

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An income statement shows


A) revenues, expenses, and net income over a period of time.
B) assets, liabilities, and equity.
C) the company's status at a particular point in time.
D) how much income each employee earned.
E) how much income the CEO earned.

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The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called an annual report.

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The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the


A) statement of cash flow.
B) balance sheet.
C) income statement.
D) master budget.
E) profit-loss statement.

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Absolute Analysis is the process of assessing the impact of the amount of debt which an organization has incurred in order to finance its asset base.

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Leverage Analysis is the process by which we assess and interpret the relationships between the financial results shown on an organization's financial statements.

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The role of the senior management team is to determine an organization's overall direction and then _________ the execution of the tactics and strategic thrusts.


A) command and run
B) dictate and govern
C) direct and manage
D) give orders and operate
E) tell and manage

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generate the dollars needed to sustain their charitable and community-based mission.

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What do capital asset transactions represent?

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Capital asset transactions are decisions...

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______,whereby we look at trends occurring over time by analyzing financial statements across multiple time periods.


A) Ratio Analysis
B) Leverage Analysis
C) Trend Analysis
D) Absolute Analysis
E) Proportional Analysis

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statements to determine its anticipated profitability position.

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Leverage Analysis is the process of assessing the impact of the amount of debt which an organization has incurred in order to finance its asset base.

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What does knowing the relationship between each of the sections of the Balance Sheet do for managers?

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Going back to our Balance Sheet accounti...

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The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a balance sheet.

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Liquidity refers to how effective the organization is in deploying its resources and managing its operational processes in the delivery of goods and/or services to the marketplace.

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Liquidity refers to the ability of the company,on the basis of the cash it has on hand and the cash it is generating within its operations,to meet its ongoing financial obligations.

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