Business Essentials - 4.01

Front

The process of keeping the financial records of a business is known as:

Back

Accounting

Front

Why are accurate accounting records important to a business?

Back

They show how the business is doing.

Front

A creditor is most likely to examine a business's financial accounting records if the business is applying for a bank loan.

Back

applying for a bank loan

Front

For an accounting system to be useful to the business, the accounting information it contains must be

Back

accurate and up to date

Front

Which of the following is a requirement for a good accounting system:
It should be updated annually,
It should provide needed information quickly,
It should eliminate the end for an accountant,
It should be replaced every two or three years

Back

It should provide needed information quickly

Front

Which of the following is a true statement: Bookkeeping is the same as accounting; Bookkeeping is limited to information on sales; Bookkeeping does not use computers; Bookkeeping records business transactions

Back

Bookkeeping records business transactions

Front

Which of the following presents the first three steps in the accounting cycle in the correct order: Post, journalize, and analyze, Analyze, journalize, and post, Post, analyze, and journalize, Analyze, post, and journalize

Back

Analyze, journalize, and post

Front

Which financial report provides estimates of when, where, and how much money will come into and out of a business next year? Options: Cash flow statement, Income statement, Balance sheet, Bank statement

Back

Cash flow statement

Front

Finance is the business function that involves managing

Back

Money

Front

The goals of the finance function are to ensure profitability and

Back

reduce risks