Self-assessment exam.

[ILLUSTRATION OMITTED]

Cash flow: Managing capital in a turbulent market

1. Which of the following represents one of the "four C's" of working capital mentioned in the article?

   1. Customers

   2. Communications

   3. Compensation

   4. Collateral

2. Which of the following was not identified in the article as needing to be managed carefully during turbulent economic times?

   1. Credit

   2. Inventory

   3. Capital

   4. Accounts receivable and accounts payable

3. In the current economic situation, what kinds of companies have become more attractive to Wall Street investors?

   1. Private companies

   2. Public companies

   3. Credit-rich companies

   4. Cash-rich companies

4. Which of the following was not identified in the article as a warning sign that a customer is having cash flow problems?

   1. Spending less than in the past

   2. Changing the mix of products purchased

   3. Discontinues paying his/her bills on a timely basis

   4. Putting purchases on hold

5. 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?

   1. Billing and collections

   2. Inventory purchasing

   3. The extension of credit

   4. Firm marketing practices

6. Which of the following did Sandy Miller, CPA identify as one of the best steps companies can take to become credit worthy?

   1. Develop a contingency plan and really understand how much it costs to run the business

   2. Terminate lackluster employees

   3. Tighten spending

   4. Move to a just-in-time approach when paying invoices

7. 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?

   1. Have a written contingency plan

   2. Have recent financial statements

   3. Have a written business plan

   4. Maintain accurate billing records

8. Which of the following was not listed in the article as being a top five best practice for maintaining working capital?

   1. Communicate honestly and often with lenders, share business plans and contingency plans, clean up financials

   2. Reduce inventory levels and SKUs, reposition company and offerings if needed

   3. Speed up cash flow

   4. Increase payment periods to conserve cash

   An inside look at the Private Company Financial Reporting Committee (PCFRC)

9. 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?

   1. FASB

   2. AICPA

   3. Private Company Financial Reporting Commission

   4. Private Company Financial Reporting Committee

10. What role will the PCFRC play in the financial reporting process?

    1. Consider differences in prospective and existing GAAP related to private companies

    2. Make formal...