Podcast
Questions and Answers
Why do engineering firms require longer term financial plans?
Why do engineering firms require longer term financial plans?
- To track sales reports
- To measure employee performance
- Due to long lead times needed for capital projects (correct)
- To conduct performance appraisals
What does an operating budget indicate?
What does an operating budget indicate?
- Labor efficiency rates
- Quality control rejects
- Expenditures, revenues, or profits planned for some future period regarding operations (correct)
- Accounts receivable
What is the main purpose of a performance appraisal?
What is the main purpose of a performance appraisal?
- To provide employees with a guide on how to do their jobs better in the future (correct)
- To track sales reports
- To manage accounts payable
- To measure quality control rejects
Which of the following is NOT typically found in a statistical report within an engineering firm?
Which of the following is NOT typically found in a statistical report within an engineering firm?
Why is a three-year financial plan useful for an engineering firm involved in constructing the Light Rail Transit (LRT)?
Why is a three-year financial plan useful for an engineering firm involved in constructing the Light Rail Transit (LRT)?
How do figures in an operating budget function as per the text?
How do figures in an operating budget function as per the text?
What does the acid-test ratio measure?
What does the acid-test ratio measure?
How is the current ratio computed?
How is the current ratio computed?
What does the inventory turnover ratio measure?
What does the inventory turnover ratio measure?
Which ratio is used to measure the utilization of a company's fixed assets?
Which ratio is used to measure the utilization of a company's fixed assets?
What does the debt to total assets ratio show?
What does the debt to total assets ratio show?
Which ratio indicates a company's ability to pay off short-term obligations without selling inventories?
Which ratio indicates a company's ability to pay off short-term obligations without selling inventories?
What is the primary purpose of analyzing changes in figures on income statements when compared to previous years?
What is the primary purpose of analyzing changes in figures on income statements when compared to previous years?
In financial ratio analysis, what does the comparison of a pair of accounts to constitute a ratio help achieve?
In financial ratio analysis, what does the comparison of a pair of accounts to constitute a ratio help achieve?
Which type of financial ratio focuses on a company's ability to meet its current obligations?
Which type of financial ratio focuses on a company's ability to meet its current obligations?
What is the purpose of comparing financial ratios to required norms in financial analysis?
What is the purpose of comparing financial ratios to required norms in financial analysis?
Which category of financial ratio analysis focuses on how effectively a company utilizes its assets?
Which category of financial ratio analysis focuses on how effectively a company utilizes its assets?
What action is usually taken when deviations occur in financial ratio analysis?
What action is usually taken when deviations occur in financial ratio analysis?
