CPS CPS Financial Management & Budgeting

Question 1

Which financial document summarizes an organization's revenues, expenses, and net income over a specific period?

Accepted Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Answer

Accounts payable ledger

Question 2

What is petty cash typically used for in an office setting?

Accepted Answer

Covering small, miscellaneous office expenses

Answer

Paying employee salaries

Answer

Processing vendor invoices

Answer

Managing capital expenditures

Question 3

When reconciling a bank statement, what does an 'outstanding check' refer to?

Accepted Answer

A check issued but not yet cleared by the bank

Answer

A check that has been cashed and cleared the bank

Answer

A check returned for insufficient funds

Answer

A check voided by the issuer

Question 4

Which term describes the process of comparing internal financial records to an external statement to ensure they match?

Accepted Answer

Reconciliation

Answer

Auditing

Answer

Depreciation

Answer

Accrual

Question 5

An accounts payable function primarily involves managing:

Accepted Answer

Money the company owes to its vendors and suppliers

Answer

Money owed to the company by customers

Answer

Employee payroll records

Answer

Investment portfolio tracking

Question 6

What is the primary purpose of a budget variance report?

Accepted Answer

To compare actual financial results against the planned budget

Answer

To forecast future revenues only

Answer

To list all outstanding invoices

Answer

To calculate employee tax withholdings