Financial Analysis POBF

What is the main reason why businesses need to keep accurate accounting records?

• to follow procedures

• to control expenses

• to eliminate risks

• to regulate taxes

The role of finance in business often involves:

• monitoring expenses

• paying employees

• buying supplies

• obtaining funds.

A farmer has 1,000 acres. he decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

• distribution.

• opportunity cost.

• efficiency.

• utility.

Assets a company already owns and can use to finance a new venture are called:

• account payable.

• dividends.

• return on capital.

• equity.

The accounting term "Accounts Receivable" means?

• Liabilities of a business and represent money owed to others.

• Assets of a business and represent money owed to a business by others.

• A method and procedure that are used in handling the business's financial cash position.

• the process of keeping and interpreting financial records.

The accounting term "Accounts Payable" means?

• Liabilities of a business and represent money owed to others.

• Assets of a business and represent money owed to a business by others.

• A method and procedure that are used in handling the business's financial cash position.

• the process of keeping and interpreting financial records.

How does Accounting and Finance describe ethics?

• The handling money and transactions that are legal and follows company procedures.

• The principles of right and wrong that guide an individual in making decisions.

• Handling financial transactions and information in a legal manner.

• There is no need for ethics because we have not seen ethical problems or practices in recent times.

The accounting term "Accounting" means?

• Liabilities of a business and represent money owed to others.

• Assets of a business and represent money owed to a business by others.

• A method and procedure that are used in handling the business's financial cash position.

• the process of keeping and interpreting financial records.

Finance is the business function that involves all money and money management matters.

• True

• False

The key differences between Finance and Accounting are. . .

• Problem Solving vs. Record keeping

• Money Management Decisions vs. Recordkeeping activities

• Boost growth, reduce risk vs. provide accurate & timely info

• Answers A & B

• Answers B & C