COA Financial Management & Budgeting Flashcards
6 cards from real COA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 COA Financial Management & Budgeting flashcards as text
Variance analysis in budgeting compares:
Answer: Actual results against budgeted figures
Variance analysis measures the difference between actual financial performance and the budgeted or planned figures to identify areas needing attention.
Which financial control practice involves comparing the company's bank statement to its own internal cash records?
Answer: Bank reconciliation
Bank reconciliation is the process of matching the company's internal cash ledger with the bank statement to identify discrepancies.
An office administrator processing expense reports should verify that all claims include:
Answer: Receipts and a business purpose for each expense
Proper expense report processing requires original receipts and a documented business purpose to ensure the expense is legitimate and reimbursable.
Accounts receivable represents money:
Answer: Owed to the company by its customers
Accounts receivable is an asset on the balance sheet representing amounts customers owe the company for goods or services already delivered.
Which term describes the process of spreading the cost of a long-term asset over its useful life?
Answer: Depreciation
Depreciation allocates the cost of a tangible fixed asset (such as office equipment) over its estimated useful life as an expense.
When preparing an office budget, a 'contingency fund' is included to:
Answer: Handle unexpected or unplanned expenses
A contingency fund is a budget reserve set aside to manage unforeseen costs or emergencies without disrupting the overall financial plan.