Business Essentials Unit 4 Review

Front

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

Back

accounting.

Front

Checks, receipts, invoices, and purchase orders are examples of

Back

source documents.

Front

What accounting record would summarize a business’s profit or loss for a previous year?

Back

Income statement

Front

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

Back

Cash flow statement

Front

Why are accurate accounting records important to a business?

Back

They show how the business is doing.

Front

Finance is the business function that involves managing

Back

money.

Front

The finance function would definitely be involved in a decision regarding new business projects and strategies.

Back

new business projects and strategies.

Front

Which of the following is a capital investment decision: How to manage cash flow, How to handle accounts payable, How to manage inventory, How to finance investments

Back

How to finance investments

Front

The cash conversion cycle should be

Back

as short as possible.

Front

Accounting is distinct from finance because its main focus is on

Back

record keeping activities.