Fundamentals of Accountancy and Business Management 1 Post test

What is the basic accounting equation?

• Assets = Liabilities - Equity

• Assets = Liabilities + Equity

• Liabilities = Assets - Equity

• Equity = Assets - Liabilities

Define the term 'business management'.

• Business management refers to the practice of micromanaging every employee and task within a company

• Business management involves only focusing on short-term goals and neglecting long-term objectives

• Business management is the process of randomly making decisions without any planning

• Business management refers to the process of overseeing and coordinating the activities and resources of a business to achieve its goals and objectives.

Explain the concept of depreciation in accounting.

• Depreciation is the increase in the value of an asset over time

• Depreciation has no impact on the financial statements of a company

• Depreciation in accounting refers to the allocation of the cost of an asset over its useful life. It represents the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation only applies to intangible assets

What are the different types of business organizations?

• Different colors of the rainbow

• Types of animals

• Los diferentes tipos de organizaciones empresariales son: sociedades de responsabilidad limitada, sociedades anónimas, empresas individuales, cooperativas y sociedades de responsabilidad limitada de un solo miembro.

• Varieties of fruits

Discuss the importance of financial statements in business.

• Financial statements are unnecessary in business as they do not reflect the company's financial health accurately

• Financial statements are not important in business as they only provide historical data

• Financial statements are important in business as they provide a snapshot of a company's financial position, performance, and cash flows. They help stakeholders make informed decisions, assess the company's profitability, and evaluate its financial health.

• Financial statements are irrelevant in business as they do not impact decision making

What are the functions of management?

• Las funciones de la gestión incluyen cocinar, limpiar y hacer ejercicio.

• Las funciones de la gestión incluyen comprar, vender y viajar.

• Las funciones de la gestión incluyen cantar, bailar y pintar.

• Las funciones de la gestión incluyen planificación, organización, dirección y control.

Describe the role of ethics in accounting and business management.

• Ethics are only important for small businesses, not large corporations

• Ethics play a crucial role in accounting and business management by ensuring transparency, integrity, and trustworthiness in financial reporting, decision-making, and overall business operations.

• Ethics only apply to personal behavior, not professional conduct

• Ethics have no impact on accounting and business management

What is the difference between bookkeeping and accounting?

• Bookkeeping is only used by small businesses, while accounting is used by large corporations

• Bookkeeping and accounting are the same thing

• Bookkeeping is the recording of financial transactions, while accounting involves interpreting, classifying, analyzing, reporting, and summarizing financial data.

• Bookkeeping involves analyzing financial data, while accounting involves recording transactions

Explain the concept of budgeting in business.

• Budgeting in business is not necessary and does not impact the success of the company.

• Budgeting in business is the process of randomly spending money without any plan or goal.

• Budgeting in business involves only estimating income without considering expenses.

• Budgeting in business refers to the process of creating a plan for the allocation of financial resources to achieve specific goals and objectives. It involves estimating income and expenses for a set period of time and making decisions on how to best use available funds.

Discuss the principles of effective communication in business management.

• The principles of effective communication in business management include confusion, verbosity, inconsistency, lack of credibility, and disregard for the audience.

• The principles of effective communication in business management include ambiguity, wordiness, irregularity, incredibility, and indifference to the audience.

• The principles of effective communication in business management include obscurity, prolixity, incoherence, untrustworthiness, and neglect of the audience.

• The principles of effective communication in business management include clarity, conciseness, consistency, credibility, and consideration for the audience.