CTVA 480 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
The amount of net profit or loss that remains after one deducts expenses from revenues. - Answers In
business, success is measured primarily by the bottom line. What is the bottom line?
Planning, Monitoring, Control - Answers What are the three major components of financial
management?
Film studios seek funding from banks, investment firms, and other equity partners domestically and
abroad
Examples of international co-financing:
The DreamWorks movie The Help was financed in part by media companies in India and Abu Dhabi.
A film currently in production by Sony Pictures Entertainment, starring Denzel Washington and Colin
Farrell, is being financed by Hollywood, Abu Dhabi, and China. - Answers What is co-financing?
Provide an example of a film that was co-financed.
Balance Sheet
Profit and Loss (P&L) Statement
Statement of Cash Flows - Answers What are the three main financial statements used by managers in
the electronic media?
Assets, Liabilities, Equity.
A firms' asset = the total liabilities + the owner's equity - Answers List the three sections of a Balance
Sheet. What is the formula which takes the three sections into account?
Current assets (liquid assets): cash, money morket account, marketable securities, account seceivable,
notes, and certain types of inventories.
Fixed assets (long-term asset): building, vehicles, and all types of equipment such as that found in
studios and transmission systems
Intangible asset: the FCC station license, network contracts for affiliated stations, franchise agreement
for a cable system, and brand recognition. programming and advertising contracts. - Answers Contrast
current assets with long-terms assets. What is an example of an intangible asset?
Amortization: deducing the value of an intangible assets over time
Depreciation: deducing the value of a fixed assets over time - Answers What are amortization and
depreciation? Be prepared to calculate each over a period of 4-5 years.
current liabilities include accounts payable, taxes, payroll expenses, and commissions for salespeople.
annual program contracts and music licensing fees.
long-term liabilities include loans on properries and capital projects. - Answers What are liabilities?
Earned income (retained earning) that has not been disbursed to stockholders or other parties. -
Answers What is owner's equity?
P&L statement identifies where changes in the financial condition of the firm took place - Answers
What is the primary purpose of the Statement of Operations (or Profit & Loss Statement)?
Revenues: money that flows into an organization through the sale or rent of various products and
services (e.g., advertising sales, subscription fees, network compensation).
advertising, subscription and other sources.
Cable and satellite companies profit from both advertising and subscriptions. - Answers What is
revenue? What types of media-related businesses have a dual revenue stream?
Expenses: The money businesses spend to create or acquire products, to bring them to market, and to
operate from day to day.
Expenses that are spent specifically to garner income. - Answers Define the term expenses. What is
meant by the term cost of revenue?
Trade Expenses: day-to-day operational
Capital Expenses: costs for items that have asset value - buildings, land, technology, and vehicles
These are also known as fixed assets or fixed costs - Answers What is the difference between trade
and capital expenses?
Fixed cost: fixed inputs such as building, land, and equipment.
, variable cost: the cost of labor, programming material and supplies - Answers Compare fixed costs to
variable costs.
15. - Answers In a breakeven analysis of a media firm, what is an example of a unit of output?
Above-the-line expenses: Story rights; salaries and other costs for writers, producers, directors,
actors, composers
Below the line expenses: Labor, administration, equipment, services, location fees, wardrobe and
props, sets, office rent, and expendables - Answers Define both above-the-line expenses and below-
the-line expenses.
To track the flow of money in an organization.
1. cash flows from operating activities
2. cash flows from investment activities
3. cash flows from financing activities - Answers What is the purpose of a Statement of Cash Flows?
List the three sections of one of these statements.
executive summaries: concise reports that one can read quickly to gain an overview of a firm's
financial progress. usually prepared by management for owners.
quarterly reports: highlight progress from the previous quarter and explain any changes in the
financial stability of the firm. provided both owners and stockholders. - Answers What is an Executive
Summary and how does it differ from a Quarterly or Annual Report?
It required a certification process that each CEO "sign off" on the truth and validity of their financial
statements or face criminal prosecution.
A result of business scandals, including Enron, WorldCom, & Adelphia - Answers What is the Sarbanes-
Oxley Act? What events prompted the passage of the Act?
Managers need budgeting in order to achieve established financial goals and objectives.
Budgeting is usually an annual process in which management projects anticipated revenues and
expenditures for the organization.
weekly, monthly, quarterly - Answers Why do managers rely on budgeting? What are a few of the
most commonly used time intervals for monitoring a budget in the media industry?
estimates of future revenues and expences - Answers What is forecasting?
Capital budgeting is long-range planning, evaluation, and selection of projects covering more than one
fiscal year.
Capital budgeting usually involves expensive purchases.
Capital budgeting allows management to evaluate projects that will increase the value of the firm. -
Answers What is capital budgeting and why would a management team use such a technique?
- Answers What is one-off project?
dailies, rough cuts, fine cuts, finished products, marketing materials - Answers What do we mean by
the term deliverables?
Force Field Analysis: provides a framework for looking at factors (forces) that influence a situation
It considers driving and restraining forces as variables that impact effectiveness (Hersey, Blachard, &
Johnson, 2012)
Used as a tool to help managers properly diagnose their environment - Answers What is a force field
analysis?
Recruitment
Selection
Interviewing
Hiring
Training
Probationary Periods
Performance Reviews
Promotion
Discipline
Termination - Answers List five functions of personnel management.
Recruiting internally: internet job postings via company bulletin, newsletters, websites, e-mail, and
other forms of communication (mostly electronic)
Social Media: Linkedin
The amount of net profit or loss that remains after one deducts expenses from revenues. - Answers In
business, success is measured primarily by the bottom line. What is the bottom line?
Planning, Monitoring, Control - Answers What are the three major components of financial
management?
Film studios seek funding from banks, investment firms, and other equity partners domestically and
abroad
Examples of international co-financing:
The DreamWorks movie The Help was financed in part by media companies in India and Abu Dhabi.
A film currently in production by Sony Pictures Entertainment, starring Denzel Washington and Colin
Farrell, is being financed by Hollywood, Abu Dhabi, and China. - Answers What is co-financing?
Provide an example of a film that was co-financed.
Balance Sheet
Profit and Loss (P&L) Statement
Statement of Cash Flows - Answers What are the three main financial statements used by managers in
the electronic media?
Assets, Liabilities, Equity.
A firms' asset = the total liabilities + the owner's equity - Answers List the three sections of a Balance
Sheet. What is the formula which takes the three sections into account?
Current assets (liquid assets): cash, money morket account, marketable securities, account seceivable,
notes, and certain types of inventories.
Fixed assets (long-term asset): building, vehicles, and all types of equipment such as that found in
studios and transmission systems
Intangible asset: the FCC station license, network contracts for affiliated stations, franchise agreement
for a cable system, and brand recognition. programming and advertising contracts. - Answers Contrast
current assets with long-terms assets. What is an example of an intangible asset?
Amortization: deducing the value of an intangible assets over time
Depreciation: deducing the value of a fixed assets over time - Answers What are amortization and
depreciation? Be prepared to calculate each over a period of 4-5 years.
current liabilities include accounts payable, taxes, payroll expenses, and commissions for salespeople.
annual program contracts and music licensing fees.
long-term liabilities include loans on properries and capital projects. - Answers What are liabilities?
Earned income (retained earning) that has not been disbursed to stockholders or other parties. -
Answers What is owner's equity?
P&L statement identifies where changes in the financial condition of the firm took place - Answers
What is the primary purpose of the Statement of Operations (or Profit & Loss Statement)?
Revenues: money that flows into an organization through the sale or rent of various products and
services (e.g., advertising sales, subscription fees, network compensation).
advertising, subscription and other sources.
Cable and satellite companies profit from both advertising and subscriptions. - Answers What is
revenue? What types of media-related businesses have a dual revenue stream?
Expenses: The money businesses spend to create or acquire products, to bring them to market, and to
operate from day to day.
Expenses that are spent specifically to garner income. - Answers Define the term expenses. What is
meant by the term cost of revenue?
Trade Expenses: day-to-day operational
Capital Expenses: costs for items that have asset value - buildings, land, technology, and vehicles
These are also known as fixed assets or fixed costs - Answers What is the difference between trade
and capital expenses?
Fixed cost: fixed inputs such as building, land, and equipment.
, variable cost: the cost of labor, programming material and supplies - Answers Compare fixed costs to
variable costs.
15. - Answers In a breakeven analysis of a media firm, what is an example of a unit of output?
Above-the-line expenses: Story rights; salaries and other costs for writers, producers, directors,
actors, composers
Below the line expenses: Labor, administration, equipment, services, location fees, wardrobe and
props, sets, office rent, and expendables - Answers Define both above-the-line expenses and below-
the-line expenses.
To track the flow of money in an organization.
1. cash flows from operating activities
2. cash flows from investment activities
3. cash flows from financing activities - Answers What is the purpose of a Statement of Cash Flows?
List the three sections of one of these statements.
executive summaries: concise reports that one can read quickly to gain an overview of a firm's
financial progress. usually prepared by management for owners.
quarterly reports: highlight progress from the previous quarter and explain any changes in the
financial stability of the firm. provided both owners and stockholders. - Answers What is an Executive
Summary and how does it differ from a Quarterly or Annual Report?
It required a certification process that each CEO "sign off" on the truth and validity of their financial
statements or face criminal prosecution.
A result of business scandals, including Enron, WorldCom, & Adelphia - Answers What is the Sarbanes-
Oxley Act? What events prompted the passage of the Act?
Managers need budgeting in order to achieve established financial goals and objectives.
Budgeting is usually an annual process in which management projects anticipated revenues and
expenditures for the organization.
weekly, monthly, quarterly - Answers Why do managers rely on budgeting? What are a few of the
most commonly used time intervals for monitoring a budget in the media industry?
estimates of future revenues and expences - Answers What is forecasting?
Capital budgeting is long-range planning, evaluation, and selection of projects covering more than one
fiscal year.
Capital budgeting usually involves expensive purchases.
Capital budgeting allows management to evaluate projects that will increase the value of the firm. -
Answers What is capital budgeting and why would a management team use such a technique?
- Answers What is one-off project?
dailies, rough cuts, fine cuts, finished products, marketing materials - Answers What do we mean by
the term deliverables?
Force Field Analysis: provides a framework for looking at factors (forces) that influence a situation
It considers driving and restraining forces as variables that impact effectiveness (Hersey, Blachard, &
Johnson, 2012)
Used as a tool to help managers properly diagnose their environment - Answers What is a force field
analysis?
Recruitment
Selection
Interviewing
Hiring
Training
Probationary Periods
Performance Reviews
Promotion
Discipline
Termination - Answers List five functions of personnel management.
Recruiting internally: internet job postings via company bulletin, newsletters, websites, e-mail, and
other forms of communication (mostly electronic)
Social Media: Linkedin
