LATEST 2024 CFCI EXAM STUDY GUIDE (A NEW
UPDATED VERSION) ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS (REVISED) |ALREADY GRADED A+
(BRAND NEW!!)
The objective of introduction to financial management is to... - ANSWER: provide
helpful guidelines on how to improve management efficiency and responsibility
rather than developing financial specialists
Financial management, like all things we do, requires... - ANSWER: impeccable
integrity and honesty
Joseph learned financial management in Potiphars home. Remember 1 Tim 3:5 . -
ANSWER: "For if a man cannot manage his own household, how can he take care of
God's church."
No ministry can survive without wise financial management. Our first test is our ... -
ANSWER: personal finances
To what extent must the senior pastor be involved in the finances? - ANSWER: a.
delegate tasks and maintain management thereof
b. not to abdicate responsibility and authority of financial management
c. Ps Theo says:The day a senior Pastor releases the financial reigns is the day he
gives up his church
d. the idea is not for the SP's to be involved, necessarily, in the day-to-day
bookeeping entries which would increase thier already obverburdened program and
weigh them down.
e. SP who would chair the meetings with the financial board and will have to be
knowledgeable in these areas in order to guide the discussions towards sound
financial decisions
Why do we need accounting information to ensure accurate records and accounts of
business with the IRC (1986) federal tax laws? - ANSWER: a. although finance may
not be the SP area of specialization, they must not soley rely on the accountant to
'do the books'
b. accounting information forms an integral part of effective financial planning and
control.
c. the information is used to report to the following stakeholders of the financial
performance and position of the entity
-management
-shareholders
-investors
-suppliers & lenders
-government
, What is the difference between bookkeeping, financial and management
accounting? - ANSWER: Bookkeeping is a record of day to day transactions, 'after the
fact'
Financial accounting turns bookkeping records into standard reports which describes
the performance of your business and submitted to the tax authorities
management accounting: helps you plan business decisions and develop meaningful
reports which will ensure wise financial decisions in areas such as budget planning,
financial control, sales, margins and stock
Financial Accounting Overview:
(Memorize & Understand Well) - ANSWER: Balance Sheet (in NPO - Statement of
Financial Position ): this is a snapshot of the church's assests and liabilities at the end
of the accounting year
Income Statement (in NPO - Statement of Changes in Net Assets): records the
income of the business against the cost of goods or services and expenses incurred
in earning that income within a certain period.
Cash flow statement: Shows how the church has generated/disposed of cash over
the reporting period and enables us to forecast the cash flow over the coming year
-These statements summarize financial consequences of past activities
To make the information contained in financial STATEMENTS clear and meaningful,
they are drawn up according to the following 3 CONVENTIONS - ANSWER: a.
Consistency: accounting practices should remain the same year to year
b. Disclosure: all info which is essential for fully understanding the financial
statements should be disclosed in addition to the info required to be disclosed by
law
c. Conservatism: Financial statements should be drawn up on a conservative basis
What are 5 most common business structuring's and what are the differences
between them? - ANSWER: 1. Sole Proprietor: someone who owns an
unincorporated business by himself
2. Limited Liability Company (LLC): hybrid type of legal structure that provides the
limited liability features of a corporation and the tax efficiencies and operational
flexibility of a partnership.
3. Partnership: a single business where two or more people share ownership.
Partnership agreements are highly recommended.
UPDATED VERSION) ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS (REVISED) |ALREADY GRADED A+
(BRAND NEW!!)
The objective of introduction to financial management is to... - ANSWER: provide
helpful guidelines on how to improve management efficiency and responsibility
rather than developing financial specialists
Financial management, like all things we do, requires... - ANSWER: impeccable
integrity and honesty
Joseph learned financial management in Potiphars home. Remember 1 Tim 3:5 . -
ANSWER: "For if a man cannot manage his own household, how can he take care of
God's church."
No ministry can survive without wise financial management. Our first test is our ... -
ANSWER: personal finances
To what extent must the senior pastor be involved in the finances? - ANSWER: a.
delegate tasks and maintain management thereof
b. not to abdicate responsibility and authority of financial management
c. Ps Theo says:The day a senior Pastor releases the financial reigns is the day he
gives up his church
d. the idea is not for the SP's to be involved, necessarily, in the day-to-day
bookeeping entries which would increase thier already obverburdened program and
weigh them down.
e. SP who would chair the meetings with the financial board and will have to be
knowledgeable in these areas in order to guide the discussions towards sound
financial decisions
Why do we need accounting information to ensure accurate records and accounts of
business with the IRC (1986) federal tax laws? - ANSWER: a. although finance may
not be the SP area of specialization, they must not soley rely on the accountant to
'do the books'
b. accounting information forms an integral part of effective financial planning and
control.
c. the information is used to report to the following stakeholders of the financial
performance and position of the entity
-management
-shareholders
-investors
-suppliers & lenders
-government
, What is the difference between bookkeeping, financial and management
accounting? - ANSWER: Bookkeeping is a record of day to day transactions, 'after the
fact'
Financial accounting turns bookkeping records into standard reports which describes
the performance of your business and submitted to the tax authorities
management accounting: helps you plan business decisions and develop meaningful
reports which will ensure wise financial decisions in areas such as budget planning,
financial control, sales, margins and stock
Financial Accounting Overview:
(Memorize & Understand Well) - ANSWER: Balance Sheet (in NPO - Statement of
Financial Position ): this is a snapshot of the church's assests and liabilities at the end
of the accounting year
Income Statement (in NPO - Statement of Changes in Net Assets): records the
income of the business against the cost of goods or services and expenses incurred
in earning that income within a certain period.
Cash flow statement: Shows how the church has generated/disposed of cash over
the reporting period and enables us to forecast the cash flow over the coming year
-These statements summarize financial consequences of past activities
To make the information contained in financial STATEMENTS clear and meaningful,
they are drawn up according to the following 3 CONVENTIONS - ANSWER: a.
Consistency: accounting practices should remain the same year to year
b. Disclosure: all info which is essential for fully understanding the financial
statements should be disclosed in addition to the info required to be disclosed by
law
c. Conservatism: Financial statements should be drawn up on a conservative basis
What are 5 most common business structuring's and what are the differences
between them? - ANSWER: 1. Sole Proprietor: someone who owns an
unincorporated business by himself
2. Limited Liability Company (LLC): hybrid type of legal structure that provides the
limited liability features of a corporation and the tax efficiencies and operational
flexibility of a partnership.
3. Partnership: a single business where two or more people share ownership.
Partnership agreements are highly recommended.
