Chapter 15 Review Prin. of Bus. Mgmt

What is the main purpose of financial records?

• To track employee attendance

• To determine if the business is profitable

• To record the business's marketing strategies

• To calculate the CEO's salary

How is profit calculated according to the slide?

• Total deposits (income) + total checks (expenses)

• Total checks (expenses) - total deposits (income)

• Total deposits (income) - total checks (expenses)

• Total sales - total inventory

What is a record keeping system?

• A digital-only process for storing personal information.

• A manual or automated process for collecting, organizing, and maintaining the financial information of a business.

• A government-mandated system for tracking business expenses only.

• A system used exclusively by bookkeepers to record personal financial data.

Which roles are mentioned as being involved in day-to-day data entry and records management activities?

• CEO and CFO

• Bookkeeper and clerk

• Accountant and financial advisor

• Marketing manager and sales executive

What should be done with a petty cash fund according to the text?

• It should be kept in an unsecured location.

• A written record of all transactions and withdrawals should be maintained.

• It should be used for all types of business expenses.

• No specific procedures are required for handling petty cash.

What does an accounts receivable record show?

• The total assets of a company

• The financial goals of a business

• What each customer purchases, pays, and owes

• The inventory levels of a company

What does an accounts payable record show?

• The financial goals of the company

• The inventory levels of the company

• Accurate record of what company owes on each account

• The investment strategies of the company

Which of the following is NOT considered a depreciable asset?

• Buildings

• Land

• Expensive equipment

• Vehicles

How is book value defined in the context of depreciation records?

• The asset's original value plus the total amount of depreciation

• The asset's depreciated value at the end of its useful life

• The asset's original value minus the total amount of depreciation

• The asset's maintenance cost over its useful life

What is the purpose of the W-4 form?

• To determine the amount to withhold from an employee's paycheck for taxes

• To record the employee's attendance and punctuality

• To evaluate the employee's performance and eligibility for promotion

• To track the employee's use of company resources