Self-assessment exam.
[ILLUSTRATION OMITTED]
Cash flow: Managing capital in a turbulent market
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Which of the following represents one of the "four C's" of working capital mentioned in the article?
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Customers
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Communications
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Compensation
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Collateral
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Which of the following was not identified in the article as needing to be managed carefully during turbulent economic times?
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Credit
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Inventory
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Capital
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Accounts receivable and accounts payable
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In the current economic situation, what kinds of companies have become more attractive to Wall Street investors?
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Private companies
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Public companies
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Credit-rich companies
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Cash-rich companies
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Which of the following was not identified in the article as a warning sign that a customer is having cash flow problems?
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Spending less than in the past
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Changing the mix of products purchased
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Discontinues paying his/her bills on a timely basis
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Putting purchases on hold
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Which of the following was identified in the article as one of the areas where companies should be extra vigilant when it comes to improving cash flow?
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Billing and collections
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Inventory purchasing
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The extension of credit
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Firm marketing practices
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Which of the following did Sandy Miller, CPA identify as one of the best steps companies can take to become credit worthy?
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Develop a contingency plan and really understand how much it costs to run the business
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Terminate lackluster employees
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Tighten spending
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Move to a just-in-time approach when paying invoices
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According to Brian Marita, CPA, companies need to put their best face forward when working with a lender. Which of the following represents one of the two vital actions he recommends?
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Have a written contingency plan
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Have recent financial statements
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Have a written business plan
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Maintain accurate billing records
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Which of the following was not listed in the article as being a top five best practice for maintaining working capital?
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Communicate honestly and often with lenders, share business plans and contingency plans, clean up financials
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Reduce inventory levels and SKUs, reposition company and offerings if needed
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Speed up cash flow
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Increase payment periods to conserve cash
An inside look at the Private Company Financial Reporting Committee (PCFRC)
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Which of the following groups has been specifically charged with considering the effects of globalization and changing regulation on the financial reporting practices of private companies?
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FASB
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AICPA
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Private Company Financial Reporting Commission
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Private Company Financial Reporting Committee
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What role will the PCFRC play in the financial reporting process?
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Consider differences in prospective and existing GAAP related to private companies
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Make formal...
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