GROUP 1

1. LIQUIDITY RATIO
2. FINANCIAL PLANNING
3. DIRECT AND INDIRECT METHOD
4. LONG-TERM (STRATEGIC) FINANCIAL PLANS
5. QUICK RATIO=CURRENT ASSETS - INVENTORY/CURRENT
LIABILITIES
6. INFLOW OF CASH
7. FINANCIAL PLANNING PROCESS
8. FINANCIAL LEVERAGE
9. ACTIVITY RATIO
10. CASH PLANNING & PROFIT PLANNING

________________________________________________________________

GROUP 2

1. Earnings available for common stockholders/ Number of shares of

common stock outstanding
2. Profit Planning
3. ACTIVITY RATIOS
4. FINANCIAL PLANNING PROCESS
5. CASH PLANNING
6. FINANCIAL PLANNING
7. Debt Ratio
8. Investment Flows
9. Depreciation increases cash flow by reducing taxable income.
10. Operating flows, investment flows, and financing flows.
GROUP 3

1. INTERNAL FORECAST
2. REQUIRED TOTAL FINANCING
3. DOUBLE-LINING METHOD
4. STRAIGHT-LINE METHOD
5. CASH RECEIPTS
6. EXTERNAL FORECAST
7. ENDING CASH
8. EXCESS CASH BALANCE
9. OPERATING FLOW
10. FINANCING FLOW

________________________________________________________________

GROUP 4

1. MODIFIED ACCELERATED COST RECOVERY

2. FINANCIAL PLANNING
3. CASH PLANNING
4. DEPRECIATION
5. INDIRECT METHOD
6. CASH RECEIPTS
7. OPERATING FLOWS
8. Book value per share of common stock = Common stock equity/ number of
shares of common stock outstanding
9. CASH DISBURSEMENT
10. EARNINGS PER SHARE
GROUP 5

1. DIRECT
2. LIQUIDITY
3. HORIZONTAL ANALYSIS
4. ENDING CASH
5. FINANCIAL PLANNING
6. DEBT RATIO = TOTAL LIABILITIES / TOTAL ASSETS
7. SHORT-TERM FINANCIAL PLANS
8. ENDING CASH
9. BALANCE SHEET / INCOME STATEMENT / CASH FLOW STATEMENT
10. COMMON-SIZE STATEMENT

_____________________________________________

GROUP 6

1. PROFIT PLANNING
2. WORKING CAPITAL
3. INVESTMENT FLOWS
4. STRAIGHT LINE METHOD
5. AVERAGE COLLECTION PERIOD
6. CASH FLOW
7. CASH BASIS
8. ACCRUAL BASIS
9. TOTAL ASSET TURNOVER = SALES / TOTAL ASSETS)
10. OPERATING FLOWS
Group 7

1. RETURN ON TOTAL ASSETS

2. CASH FLOW
3. FINANCIAL PLANNING PROCESS
4. Straight-line Method/ Double-declining Method/ Sum of the year digits
Method
5. TIME INTEREST EARNED RATIO
6. INTERNAL FORECAST
7. QUICK RATIO = CURRENT ASSET - INVENTORY/ CURRENT
LIABILITIES
8. FINANCIAL STATEMENT FORECASTING/ FORECASTING
9. MODIFIED ACCELERATED COST RECOVERY SYSTEM/ (MACRS)
10. DEPRECIATION

_____________________________________________

GROUP 8

1. CASH PLANNING
2. PROFIT PLANNING
3. OPERATING FLOWS, INVESTMENT FLOWS, FINANCING FLOWS
4. STRAIGHT LINE METHOD, DOUBLE DECLINING METHOD, SUM Of
THE YEAR DIGITS METHOD
5. MODIFIED ACCELERATED COST RECOVERY SYSTEM (MACRS)
6. INTERNAL FORECAST
7. EXTERNAL FORECAST
8. CASH RECEIPTS
9. ENDING CASH
10. PRO FORMA STATEMENTS
GROUP 1

1. What financial metric is used to evaluate a firm's ability to meet its

short-term obligations and assess the ease with which it can pay its bills?
- LIQUIDITY RATIO
2. What helps a firm create a road map to guide, coordinate, and control its
actions to achieve its goals?
- FINANCIAL PLANNING
3. What are the two methods used to calculate cash flow from operations?
- DIRECT AND INDIRECT METHOD
4. What type of financial plan typically spans a period of 2 to 10 years and
outlines a firm’s planned financial actions and their anticipated outcomes?
- LONG-TERM (STRATEGIC) FINANCIAL PLANS
5. What is the formula for the Quick (Acid-Test) Ratio?
- QUICK RATIO=CURRENT ASSETS - INVENTORY/CURRENT
LIABILITIES
6. What does a decrease in an asset, such as accounts receivable or
inventory, indicate in the statement of cash flows?
- INFLOW OF CASH
7. It begins with long-term or strategic financial plans. It guides the
formulation of short-term or operating plans and budgets. The short-term
plans and budgets implement the firm’s long-term strategic objectives.
- FINANCIAL PLANNING PROCESS
8. Is the magnification of risk and return introduced through the use of
fixed-cost financing, such as debt and preferred stock. The more fixed-cost
debt a firm uses, the greater will be its expected risk and return.
- FINANCIAL LEVERAGE
9. It measures the speed with which various accounts are converted into
sales or cash-inflows or outflows.
- ACTIVITY RATIO
10. What are the two key aspects of the financial planning process?
- CASH PLANNING & PROFIT PLANNING
GROUP 2

1. Formula of Earnings per Share

- Answer: Earnings available for common stockholders/ Number of
shares of common stock outstanding
2. Involves preparation of pro forma statement.
- Answer: Profit Planning
3. Measure the speed with which various accounts are converted into sales
or cash—inflows or outflows.
- Answer: ACTIVITY RATIOS
4. Begins with long-term, or strategic, financial plans.
- Answer: FINANCIAL PLANNING PROCESS
5. It involves preperation of the firm's cash budget
- Answer: CASH PLANNING
6. It provides road maps for guiding, coordinating, and controlling the firm's
action to achieve its objectives
- Answer: FINANCIAL PLANNING
7. The higher the ratio, the greater the amount of other people’s money being
used to generate profits.
- Answer: Debt Ratio
8. Are cash flows that associated with the purchaseand sale of both fixed
assets and equity investments in other firms.
- Answer: Investment Flows
9. How does depreciation affect a firm's cash flow?
- Answer: Depreciation increases cash flow by reducing taxable
income.
10. What are the three categories of cash flows in a firm?
- Answer: Operating flows, investment flows, and financing flows.
GROUP 3

1. A sales forecast based on build up or consensus, of sales forecasts

through the firm's own sales channels
- (internal forecast)
2. Amount of funds needed by the firm if the ending cash for the period is less
than the desired minimum cash balance; typically represented by notes
payable
- (required total financing)
3. An even more accelerated depreciation method.
- (Answer: Double-lining Method)
4. Most basic way to record depreciation.
- (Answer: Straight-line Method)
5. It include all of a firm’s inflows of cash during a given financial period. The
most common components of cash receipts are cash sales, collections of
accounts receivable, and other cash receipts.
- ( Cash Receipts)
6. A type of sales forecast that are based on the relationships observed
between the firm’s sales and certain key external economic indicators.
- ( EXTERNAL FORECAST )
7. The sum of the firm’s beginning cash and its net cash flow for the period.
- (Answer: Ending Cash)
8. The (excess) amount available for investment by the firm if the period’s
ending cash is greater than the desired minimum cash balance; assumed
to be invested in marketable securities.
- ( Answer: Excess cash balance)
9. It refers to the cash inflows and outflows directly related to the production
and sale of a firm's products and services.
- (OPERATING FLOW)
10. It describes the cash inflows and outflows that result from debt and
equity financing transactions, such as borrowing, repaying debt, issuing
stock, or paying dividends.
- (FINANCING FLOW)
GROUP 4

1. A system used to determine the depreciation of assets for tax purposes.

- MODIFIED ACCELERATED COST RECOVERY
2. It is important aspect of the firms operations because it provides road
maps for guiding, coordinating, and controlling the firms actions to achieve
its objectives.
- FINANCIAL PLANNING
3. It involves preparation of the firm's cash budget.
- CASH PLANNING
4. The systematic charging of a portion of the costs of fixed assets against
annual revenues over time.
- DEPRECIATION
5. It is a method wherein calculating cash flow from operating activities
requires you to start with net income from the income statement and make
adjustments to “undo” the impact of the accruals made during the reporting
period.
- INDIRECT METHOD
6. It include all of a firm’s inflows of cash during a given financial period. The
most common components of cash receipts are cash sales, collections of
accounts receivable, and other cash receipts.
- CASH RECEIPTS
7. Statement of cash flow that the cash inflows and outflows directly related to
the sale and production of the firm’s products and services.
- OPERATING FLOWS
8. Market/Book ratio provides an assessment of how investors view the firm's
performance. What is the formula for the market/book ratio?
- Book value per share of common stock= common stock equity/
number of shares of common stock outstanding
9. It include all outlays of cash by the firm during a given financial period.
- CASH DISBURSEMENT
10. It represents the dollar amount earned on behalf of each share-not the
amount of earnings actually distributed to shareholders.
- EARNINGS PER SHARE
GROUP 5

1. Cash flow from operations can be calculated using the ______ and Indirect
methods
- ( DIRECT )
2. This is a firm’s ability to satisfy its short-term obligations as they come
due.
- ( LIQUIDITY )
3. It is also known as a Trend Analysis.
- ( HORIZONTAL ANALYSIS )
4. The sum of the firm’s beginning cash and its net cash flow for the period.
- ( ENDING CASH )
5. __________ is an important aspect of the firm’s operations because it
provides road maps for guiding, coordinating, and controlling the firm’s
actions to achieve its objectives.
- ( FINANCIAL PLANNING )
6. Formula of debt ratio.
- (DR = TOTAL LIABILITIES / TOTAL ASSETS)
7. These plans most often cover a 1- to 2-year period.
- ( SHORT-TERM FINANCIAL PLANS )
8. The sum of the firm’s beginning cash and its net cash flow for the period.
- ( ENDING CASH)
9. Give one of the three key pro forma statements
- ( BALANCE SHEET / INCOME STATEMENT / CASH FLOW
STATEMENT )
10. Vertical analysis is also known as?
- ( COMMON-SIZE STATEMENT )
GROUP 6

1. It is one of the two key aspects of the financial planning process that
involves preparation of pro forma statements.
- (Answer: PROFIT PLANNING)
2. It provides insight into a company's short-term liquidity and efficiency.
- (Answer: WORKING CAPITAL)
3. Cash flows associated with the purchase and sale of both fixed assets and
equity investments in other firms.
- (Answer: INVESTMENT FLOWS)
4. The most basic way to record depreciation.
- (Answer: STRAIGHT LINE METHOD)
5. It is useful in evaluating credit and collection policies.
- (Answer: AVERAGE COLLECTION PERIOD)
6. It is referred to as the lifeblood of the firm.
- (Answer: CASH FLOW)
7. Refers to a major accounting method that recognizes revenues and
expenses at the time cash is received or paid out.
- (Answer: CASH BASIS)
8. In preparation of financial statements they recognize revenue at the time of
sales and recognize expenses when they are incurred.
- (Answer: ACCRUAL BASIS)
9. What is the formula of Total Asset Turnover?
- (Answer: TOTAL ASSET TURNOVER = SALES / TOTAL ASSETS)
10. Are cash inflows and outflows directly related to the sale and production
of the firm's products and services.
- (Answer: OPERATING FLOWS)
Group 7

1. Measures the overall effectiveness of management in generating profits

with its available assets and also often called the return on investment
(ROI)
- RETURN ON TOTAL ASSETS
2. Is the primary focus of the financial manager both in managing day-to-day
finances
- CASH FLOW
3. Begins with long-term, or strategic, financial plans.
- FINANCIAL PLANNING PROCESS
4. Give atleast 1 methods of Depreciation.
- Straight-line Method/ Double-declining Method/ Sum of the year
digits Method
5. Measures the firm’s ability to make contractual interest payments and
sometimes called interest coverage ratio.
- TIME INTEREST EARNED RATIO
6. A sales forecast based on a buildup, or consensus, of sales forecasts
through the firm’s own sales channels.
- INTERNAL FORECAST
7. What Is the Formula of Quick (Acid-test) Ratio?
- QUICK RATIO=CURRENT ASSET - INVENTORY/ CURRENT
LIABILITIES
8. The purpose of _ is to assess how the business has been performing now
and how it will perform in the future.
- FINANCIAL STATEMENT FORECASTING/ FORECASTING
9. A system used to determine the depreciation of assets for tax purposes.
- MODIFIED ACCELERATED COST RECOVERY SYSTEM/
(MACRS)
10. The systematic charging of a portion of the costs of fixed assets against
annual revenues over time.
- DEPRECIATION
GROUP 8

1. Involves preparation of the firm's cash budget

- (CASH PLANNING)
2. Involves preparation of Pro Forma Statements
- (PROFIT PLANNING)
3. 3 categories of firm's cash flow
- (OPERATING FLOWS, INVESTMENT FLOWS, FINANCING
FLOWS)
4. 3 depreciation method
- ( STRAIGHT LINE METHOD, DOUBLE DECLINING METHOD,
SUM Of THE YEAR DIGITS METHOD)
5. A system used to determine the depreciation of assets for tax purposes
- (MODIFIED ACCELERATED COST RECOVERY SYSTEM
(MACRS))
6. A sales forecast based on a buildup, or consensus, of sales forecasts
through the firm's own sales channels.
- (INTERNAL FORECAST)
7. A sales forecast based on the relationships observed between the firm's
sales and certain key external economic indicators.
- (EXTERNAL FORECAST)
8. It includes all of a firm's inflows of cash during a given financial period.
- (CASH RECEIPTS)
9. It is the sum of firm's Beginning Cash and its Net Cash flow for the period.
- (ENDING CASH)
10. It enables the companies to make comparative analysis of actual
historical data of their financial plan and make any necessary corrections
or adjustments on the variances.
- (PRO FORMA STATEMENTS)