CPS Financial Management & Budgeting Flashcards

Which of the following best describes capital expenditures (CapEx)?

Answer: Long-term investments in assets like equipment or buildings

Capital expenditures are funds used to acquire or upgrade physical long-term assets, such as machinery, buildings, or technology infrastructure.

When asked to track departmental spending against budget, which spreadsheet function is most directly useful?

Answer: SUM and subtraction to calculate variance

Calculating variance simply requires subtracting actual spending from budgeted amounts using SUM functions, making this the most direct approach.

An invoice is marked 'past due.' What is the administrative professional's appropriate first action?

Answer: Verify whether the invoice was received, approved, and entered into the payment system

The correct first step is to trace the invoice through the internal workflow to determine if it was received, coded, and approved before escalating or paying.

Which of the following describes a direct deposit authorization form's primary purpose?

Answer: Allowing payroll to electronically deposit employee pay into a bank account

A direct deposit authorization form gives the employer permission to electronically transfer an employee's net pay directly to their designated bank account.

What is the primary function of an audit trail in financial recordkeeping?

Answer: To provide a chronological record of all financial transactions for accountability

An audit trail documents who made each financial entry, when, and what was changed, supporting accountability, transparency, and compliance.

Which of the following describes accrual-basis accounting?

Answer: Revenue and expenses are recorded when earned or incurred, regardless of cash movement

Accrual accounting recognizes revenue when earned and expenses when incurred, matching them to the period they relate to regardless of cash flow timing.