Podcast
Questions and Answers
Which financial system records all income and expenses as they occur in the general ledger?
Which financial system records all income and expenses as they occur in the general ledger?
- Balance sheet system
- Statement of income and expenses system
- Cash system
- Accrual system (correct)
What does a statement of income and expenses provide?
What does a statement of income and expenses provide?
- A summary of income, expenses, and profit or loss (correct)
- A summary of profit or loss only
- A summary of expenses only
- A summary of income only
What does a balance sheet indicate?
What does a balance sheet indicate?
- Liabilities and debts only
- Assets, equity position, liabilities, and debts (correct)
- Assets and equity position only
- Profit margins and loan commitments
What should an architect establish when engaging an accountant?
What should an architect establish when engaging an accountant?
According to the text, what is the purpose of setting aside a percentage of the profit as a capital reserve?
According to the text, what is the purpose of setting aside a percentage of the profit as a capital reserve?
What are some factors that should be considered in determining the distribution of bonuses to staff?
What are some factors that should be considered in determining the distribution of bonuses to staff?
In 'lean' years, what may happen to the capital reserve?
In 'lean' years, what may happen to the capital reserve?
What is the purpose of proper tax planning in relation to profit withdrawal from the practice?
What is the purpose of proper tax planning in relation to profit withdrawal from the practice?
Which type of accounting is done within the architectural practice, often by staff or a bookkeeper?
Which type of accounting is done within the architectural practice, often by staff or a bookkeeper?
What should the financial plan of an architectural practice include?
What should the financial plan of an architectural practice include?
What is the purpose of short-term financial planning, usually called budgeting?
What is the purpose of short-term financial planning, usually called budgeting?
What is an audit in the context of accounting?
What is an audit in the context of accounting?
Which of the following factors may lead to inadequate profit margins for an architectural practice?
Which of the following factors may lead to inadequate profit margins for an architectural practice?
What does the multiplier in the billing rate formula represent?
What does the multiplier in the billing rate formula represent?
How can the number of billable hours in a year be determined?
How can the number of billable hours in a year be determined?
What is the utilization factor?
What is the utilization factor?
According to the text, when is the best time to negotiate for a line of credit with a bank?
According to the text, when is the best time to negotiate for a line of credit with a bank?
According to the text, what is the prime rate?
According to the text, what is the prime rate?
According to the text, what information should the architect provide to the bank when borrowing funds?
According to the text, what information should the architect provide to the bank when borrowing funds?
According to the text, what should the architect do when determining fees for services?
According to the text, what should the architect do when determining fees for services?
Which of the following is NOT a reason why a profit is required in a practice?
Which of the following is NOT a reason why a profit is required in a practice?
According to the text, how should the distribution of bonuses to staff be determined?
According to the text, how should the distribution of bonuses to staff be determined?
When the practice is owned by shareholders or partners who have invested capital, how should their investment earn interest?
When the practice is owned by shareholders or partners who have invested capital, how should their investment earn interest?
According to the text, what are some factors that should be considered in a performance review?
According to the text, what are some factors that should be considered in a performance review?
What is the purpose of building a successful financial history in a practice?
What is the purpose of building a successful financial history in a practice?
True or false: The purpose of building a successful financial history in a practice is to attract potential clients and investors.
True or false: The purpose of building a successful financial history in a practice is to attract potential clients and investors.
True or false: The distribution of bonuses to staff should be solely based on their productivity.
True or false: The distribution of bonuses to staff should be solely based on their productivity.
True or false: The investment of shareholders or partners in the practice should earn interest at the bank's prime rate of interest.
True or false: The investment of shareholders or partners in the practice should earn interest at the bank's prime rate of interest.
True or false: Financial planning in an architectural practice should include short-term budgeting only.
True or false: Financial planning in an architectural practice should include short-term budgeting only.
True or false: The prime rate is the interest rate at which banks lend to their most creditworthy customers.
True or false: The prime rate is the interest rate at which banks lend to their most creditworthy customers.
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