Checking Actual Performance Against Plans to Ensure That the Desired

question 180

Multiple Choice

Checking actual performance against plans to ensure that the desired financial status is achieved is called

• A)financial control.
• B)financial planning.
• C)cash-flow management.
• D)performance monitoring.
• E)budget oversight.

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Definitions:

Net Income

The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).

Equity Accounts

Accounts that represent the owner's claim or interest in the assets of a business, reflected in the equity section of the balance sheet.

Operating Activities

The day-to-day actions that are involved in running a business, which are reflected in the cash flows from operating activities section of the cash flow statement.