POBF - Unit 6 Finals Review

Accounting is:

• the process of obtaining funds and using them to achieve the goals of the business.

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

• the methods and procedures used in consistently handling the business's financial information records.

• the process of keeping and interpreting financial records.

An accounting system is:

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

• the process of obtaining funds and using them to achieve the goals of the business.

• the methods and procedures used in consistently handling the business's financial information.

• the process of keeping and interpreting financial records.

The accrual accounting method is:

• an accounting method in which income and expenditures are recorded at the time the money changes hands.

• used to reduce and eliminate costs in a business.

• a type of accounting that involves preparing and reporting financial data to internal users who need financial information to control day-to-day operations and to make financial decisions and plans affecting the business.

• a method of accounting that records transactions at the time they occur even if no money changes hands at the time.

Cash accounting is;

• an accounting method in which income and expenditures are recorded at the time the money changes hands.

• a method of accounting that records transactions at the time they occur even if no money changes hands at the time.

• used to reduce and eliminate costs in a business.

• the process of obtaining funds and using them to achieve the goals of the business.

Cost accounting is:

• the process of keeping and interpreting financial records.

• the process of obtaining funds and using them to achieve the goals of the business.

• used to reduce and eliminate costs in a business. It is used to determine the price for a product or service that will allow earning of a reasonable profit.

• the methods and procedures used in consistently handling the business's financial information.

Managerial accounting is;

• the process of obtaining funds and using them to achieve the goals of the business.

• a type of accounting that involves preparing and reporting financial data to internal users who need financial information to control day-to-day operations and to make financial decisions and plans affecting the business.

• a method of accounting that records transactions at the time they occur even if no money changes hands at the time.

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

Finance is:

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

• the process of obtaining funds and using them to achieve the goals of the business.

• the process of keeping and interpreting financial records.

• management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash.

Capital investment decisions are: 

• management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash.

• the process of keeping and interpreting financial records.

• the process of obtaining funds and using them to achieve the goals of the business.

• decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders.

Working capital management is:

• the process of keeping and interpreting financial records.

• decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders.

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

• management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash.

The cash conversion cycle of working capital management is:

• the process of keeping and interpreting financial records.

• A measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

• making decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders.

• a ratio that refers to the number of days between a company’s paying for raw materials and receiving cash from selling the products made from those raw materials.