PHR Certification EXAM (HRCI) Study
Guide Exam and Actual Answers 2025-
2026 Updated.
Money an organization owes its vendors and suppliers. - Answer Accounts Payable
Money an organization's customers owe the organization. - Answer Accounts Receivable
Detailed steps a unit, department, or team will take in order to achieve short-term objectives. -
Answer Action Plans
Modification or the Constitution or a law; modification may be either formal (written) or
informal (unwritten). - Answer Amendment
Financial, physical, and sometiems intangible properties an organization owns. - Answer
Assets
Statement of a firm's financial position at a particular time. - Answer Balance Sheet
Measurement approach that provides an overall picture of an organization's performance as
measured against goals in finance, customers, internal business processes, and learning and
growth. - Answer Balanced scorecard
Proposal presented to a legislative body for possible enactment as a law. - Answer Bill
Analysis that shows point in time at which total revenue associated with a program is equal to
the total cost of the program. - Answer Break-even analysis
Description of an organizational challenge and possible alternative solutions, arguing for specific
solution. - Answer Business Case
To an operations department, the ability to yield output. - Answer Capacity
,Degree to which decision-making authority is restricted to higher levels of management in an
organization. - Answer Centralization
Principles of conduct within an organization that guide decision making and behavior. - Answer
Code of ethics
Measure of the average change over time in the prices paid by consumers for goods and
services. - Answer Consumer price index
To an operations department, an after-the-fact evaluation of a company's ability to meet its own
specifications and its customers' needs. - Answer Control
Measure that indicates the relationship between two variables. - Answer Correlation
Ratio of value created to cost of creating that value; allows management to determine the
financial impact particular activities and programs have on an organization's profitability. -
Answer Cost-benefit analysis
Degree to which decision-making authority is given to lower levels in an organization's
hierarchy. - Answer Decentralization
Way an organization groups jobs to coordinate work. - Answer Departmentalization
Sale by a company of an asset that is not performing well, that is not core to the company's
business, or that is worth more as a separate entity. - Answer Divestiture
Organizational structure in which segments ae separated by product, customer or market, or
region. - Answer Divisional structure
Process of conducting an intensive investigation of an organization as one of the first steps in a
pending merger or acquisition. - Answer Due diligence
1986- Act that makes it unlawful to intercept messages in transmission, access stored
information on electronic communication services, or disclose this information. - Answer
Electronic Communications Privacy Act (ECPA)
,Process that involves a systematic survey and interpretation of relevant data to identify external
opportunities and threats. - Answer Environmental scanning
Amount of owners' or shareholders' portion of a business. - Answer Equity
System of moral principles and values that establish appropriate conduct. - Answer Ethics
Alliance between organizations to create processes and information channels that allow
communication and collaboration. - Answer Extended organization
Calculations designed to describe an organization's financial health and performance from
various perspectives. - Answer Financial ratios
1977- Prohibits American companies from making corrupt payments to foreign officials for the
purpose of obtaining or keeping business. ~ Ammended as Title 15 U.S.C. - Answer Foreign
Corrupt Practices Act (FCPA)
Form of budgeting in which an average cost is applied to comparable expenses and general
funding is changed by a specific amount. - Answer Formula budgeting
Organizational structure that defines departments by what services they contribute to the
organization's overall mission. - Answer Functional structure
Project planning tool that graphically displays activities of a project in sequential order and plots
them against time. - Answer Gantt chart
Group of people born roughly between the years of 1965 - 1980 - Answer Generation X
Group of people born after 1980. - Answer Generation Y
Group of people born 1995-2010 - Answer Generation Z (Digital Natives)
Estimate of the total value of goods and services produced in a country in a given year. - Answer
, Process to measure the effectiveness and efficiency of HR programs and positions. - Answer
HR audit
Combined knowledge, skills, and experience of a company's employees. - Answer Human
capital
Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data. - Answer
Human resource information system (HRIS)
Design of formal systems in an organization that ensure the effective and efficient use of human
capital to accomplish organizational goals. - Answer Human resource management (HRM)
Statement comparing revenues, expenses, and profits over a specified period of time, usually a
year or a quarter. - Answer Income statement
Form of budgeting in which the prior budget is the basis for allocation of funds. - Answer
Incremental budgeting
To an operations department, an organization's major asset after physical buildings and
equipment. - Answer Inventory
Quantifiable measures of performances used to gauge progress toward strategic objectives or
agreed standards of performance. - Answer Key performance indicators (KPIs)
Organization's debts and other financial obligations. - Answer Liabilities
Work groups that conduct the major business of an organization. - Answer Line units
Specific results, to be accomplished in three to five years, that an organization seeks to achieve
in pursuing its mission. - Answer Long-term objectives
Process of planning, pricing, promoting, and distributing goods and services to satisfy
organizational objectives. - Answer Marketing
Guide Exam and Actual Answers 2025-
2026 Updated.
Money an organization owes its vendors and suppliers. - Answer Accounts Payable
Money an organization's customers owe the organization. - Answer Accounts Receivable
Detailed steps a unit, department, or team will take in order to achieve short-term objectives. -
Answer Action Plans
Modification or the Constitution or a law; modification may be either formal (written) or
informal (unwritten). - Answer Amendment
Financial, physical, and sometiems intangible properties an organization owns. - Answer
Assets
Statement of a firm's financial position at a particular time. - Answer Balance Sheet
Measurement approach that provides an overall picture of an organization's performance as
measured against goals in finance, customers, internal business processes, and learning and
growth. - Answer Balanced scorecard
Proposal presented to a legislative body for possible enactment as a law. - Answer Bill
Analysis that shows point in time at which total revenue associated with a program is equal to
the total cost of the program. - Answer Break-even analysis
Description of an organizational challenge and possible alternative solutions, arguing for specific
solution. - Answer Business Case
To an operations department, the ability to yield output. - Answer Capacity
,Degree to which decision-making authority is restricted to higher levels of management in an
organization. - Answer Centralization
Principles of conduct within an organization that guide decision making and behavior. - Answer
Code of ethics
Measure of the average change over time in the prices paid by consumers for goods and
services. - Answer Consumer price index
To an operations department, an after-the-fact evaluation of a company's ability to meet its own
specifications and its customers' needs. - Answer Control
Measure that indicates the relationship between two variables. - Answer Correlation
Ratio of value created to cost of creating that value; allows management to determine the
financial impact particular activities and programs have on an organization's profitability. -
Answer Cost-benefit analysis
Degree to which decision-making authority is given to lower levels in an organization's
hierarchy. - Answer Decentralization
Way an organization groups jobs to coordinate work. - Answer Departmentalization
Sale by a company of an asset that is not performing well, that is not core to the company's
business, or that is worth more as a separate entity. - Answer Divestiture
Organizational structure in which segments ae separated by product, customer or market, or
region. - Answer Divisional structure
Process of conducting an intensive investigation of an organization as one of the first steps in a
pending merger or acquisition. - Answer Due diligence
1986- Act that makes it unlawful to intercept messages in transmission, access stored
information on electronic communication services, or disclose this information. - Answer
Electronic Communications Privacy Act (ECPA)
,Process that involves a systematic survey and interpretation of relevant data to identify external
opportunities and threats. - Answer Environmental scanning
Amount of owners' or shareholders' portion of a business. - Answer Equity
System of moral principles and values that establish appropriate conduct. - Answer Ethics
Alliance between organizations to create processes and information channels that allow
communication and collaboration. - Answer Extended organization
Calculations designed to describe an organization's financial health and performance from
various perspectives. - Answer Financial ratios
1977- Prohibits American companies from making corrupt payments to foreign officials for the
purpose of obtaining or keeping business. ~ Ammended as Title 15 U.S.C. - Answer Foreign
Corrupt Practices Act (FCPA)
Form of budgeting in which an average cost is applied to comparable expenses and general
funding is changed by a specific amount. - Answer Formula budgeting
Organizational structure that defines departments by what services they contribute to the
organization's overall mission. - Answer Functional structure
Project planning tool that graphically displays activities of a project in sequential order and plots
them against time. - Answer Gantt chart
Group of people born roughly between the years of 1965 - 1980 - Answer Generation X
Group of people born after 1980. - Answer Generation Y
Group of people born 1995-2010 - Answer Generation Z (Digital Natives)
Estimate of the total value of goods and services produced in a country in a given year. - Answer
, Process to measure the effectiveness and efficiency of HR programs and positions. - Answer
HR audit
Combined knowledge, skills, and experience of a company's employees. - Answer Human
capital
Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data. - Answer
Human resource information system (HRIS)
Design of formal systems in an organization that ensure the effective and efficient use of human
capital to accomplish organizational goals. - Answer Human resource management (HRM)
Statement comparing revenues, expenses, and profits over a specified period of time, usually a
year or a quarter. - Answer Income statement
Form of budgeting in which the prior budget is the basis for allocation of funds. - Answer
Incremental budgeting
To an operations department, an organization's major asset after physical buildings and
equipment. - Answer Inventory
Quantifiable measures of performances used to gauge progress toward strategic objectives or
agreed standards of performance. - Answer Key performance indicators (KPIs)
Organization's debts and other financial obligations. - Answer Liabilities
Work groups that conduct the major business of an organization. - Answer Line units
Specific results, to be accomplished in three to five years, that an organization seeks to achieve
in pursuing its mission. - Answer Long-term objectives
Process of planning, pricing, promoting, and distributing goods and services to satisfy
organizational objectives. - Answer Marketing
