NPS Financial Management & Budgeting

Question 1

What is the primary purpose of a budget in an organization?

Accepted Answer

To plan and control financial resources

Answer

To track employee attendance

Answer

To manage customer relationships

Answer

To schedule project timelines

Question 2

Which financial statement reports a company's revenues and expenses over a specific period?

Accepted Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Answer

Statement of equity

Question 3

What does ROI stand for in a financial context?

Accepted Answer

Return on Investment

Answer

Rate of Inflation

Answer

Revenue Over Income

Answer

Risk of Insolvency

Question 4

Variance analysis in budgeting is used to compare what?

Accepted Answer

Actual financial results against budgeted figures

Answer

Employee performance against peers

Answer

Current year revenue against prior year

Answer

Cash inflows against cash outflows

Question 5

What is a capital expenditure (CapEx)?

Accepted Answer

Money spent on acquiring or upgrading long-term assets

Answer

A recurring monthly operating expense

Answer

Wages paid to full-time employees

Answer

Funds allocated for marketing campaigns

Question 6

What is the purpose of a cash flow statement?

Accepted Answer

To show changes in cash and cash equivalents over a period

Answer

To list all company assets and liabilities

Answer

To summarize shareholder equity transactions

Answer

To report annual tax obligations