Business Essentials 4.01 ACCT Review

Finance is the business function that involves managing

•               information.

• marketing.

• money.

• production.

The goals of the finance function are to ensure profitability and

• advertise products.

• give out information.

• manufacture raw materials.

• reduce risks.

Accounting is distinct from finance because its main focus is on

• acquisition of funds.

• administration of assets.

• money management decisions.

• recordkeeping activities.

The administration of assets refers to decisions about

• accounting.

• financing.

• investments.

• spending.

Decisions about financing refer to the

• accounts receivable.

• accounting department.

• acquisition of funds.

• administration of assets.

The finance function ensures that the company’s financial goals are

• acceptable to the marketing department.                   

• easy to accomplish.

• in line with organizational priorities.

• related to product development.

How does the finance function relate to company spending?

• It does not relate to spending.

• It plans and controls spending.

• It produces reports about spending.

• It spends on investments only.

Money the business owes is known as

• assets.

• equity.

• accounts payable.

• accounts receivable.

Money owed to the business is known as

• assets.

• equity.

• accounts payable.

• accounts receivable.

To keep communication flowing with other departments, the finance function depends on

• accounts receivable.

• information systems.

• marketing.

• production.