4.0 Unit Exam

What is a cash flow statement?

• Shows how much money a business has made or lost during a specific time.

• Captures the business's financial condition at a particular moment.

• Financial summary estimating when, where, and how much money will flow into/out of a business during a specific period.

What is managerial accounting?

• Type of accounting that reports financial data to internal users

• Type of accounting that reports financial data to external users

• Type of accounting that reports financial data to other businesses

Payments that do not vary from month to month are ____________blank expenses

• Fixed

• Variable

• Occasional

• Irregular

What are some ways that accounting information can be used to keep financial control?

• By tracking the business’s performance

• By planning for the future

• Both A and B

What Are Investors?

• An investor is an individual who puts money into an entity, such as a business, for a financial return.

• An investor is someone who takes money out of a business

• An investor is someone who makes sure financial records are missing

What is an example of the accrual accounting method?

• Journalizing income when it happens

• Journaling income down before it happens

• Accruing money without journaling it into the financial records

What are the two main ways businesses use accounting information to maintain financial control?

• By tracking the business performance/net worth and planning for the future

• By only focusing on their profits and assets

• By looking at what they should have done in the past and doing what’s cheapest for the business

Why is financing important?

• Helps set goal for the future

• Invests company money wisely

• All of the above

What is the difference between finance and accounting?

• There is no difference.

• Accounting is primarily focused on money management decisions, while Finance is the process of keeping and interpreting financial records.

• Accounting is the process of keeping and interpreting financial records, while Finance is focused on money management decisions.

What is a key component of managing work capital?

• 1. Utilizing time and space

• 1. Return on Capital 

• 1. Cash conversion cycle