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1. What is the easiest thing for an operational manager to do in the short term if they want to impact the value of an account recorded in a financial report or statement?
Renegotiate the amount for the transaction.
Change the date when the transaction will occur to move it into the report period or out of the report period.
It is impossible for an operational manager to do anything that will impact what is recorded on a financial statement or report.
2. Which financial statement can be used to understand why the value on a Balance Sheet changed from the beginning of the year to the end of the year?
The Earnings Statement.
Both the Earnings Statement and the Cash Flow Statement are needed to understand the changes.
The Variance Report.
3. What two items that are major categories of the Balance Sheet and Cash Flow Statement are not found on the Earning Statement?
Cash balance and debt.
Capitalization and depreciation.
Profit and loss.
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