BU 1.1 Accounting: What is Accounting

According to the text, what is the main purpose of learning the "language" of accounting?

• To become fluent in Spanish

• To talk business with anyone or understand business conversations

• To watch movies on Netflix

• To become a registered nurse

What does "Market Capitalization" mean as explained in the text?

• The total revenue a company earns in a year

• The number of paid subscribers a company has

• The value of a company, calculated by multiplying the number of outstanding shares by the current stock price

• The amount of money spent on advertising

Which company is mentioned as an example of a publicly traded company in the text?

• Amazon

• Netflix

• Google

• Apple

At the end of 2021, approximately how many employees did Netflix have?

• 2,000

• 12,000

• 50,000

• 100,000

Why is accounting described as its own language in the text?

• Because it is only used by accountants

• Because it involves many specific terms and concepts

• Because it is easy to learn

• Because it is only used during tax season

If a company raises money by selling stock on the stock exchange, what is it selling?

• Debt

• Equity

• Bonds

• Assets

Why is it important for financial information to be delivered in a consistent format over time?

• So users can compare it to prior periods;

• So it can be kept secret from competitors;

• So it can be destroyed after use;

• So it can be used for advertising;

Which of the following best describes the process of accounting?

• Recording, maintaining, and reporting an organization’s financial transactions and records;

• Hiring employees and managing payroll;

• Developing marketing strategies for products;

• Designing new products for the company;

If Netflix charged $30 per month based on inaccurate information about their product costs, what could be a likely consequence?

• Consumers would pay a higher price, potentially hurting sales;

• Netflix would gain more subscribers;

• Competitors would raise their prices;

• Netflix would have no impact on the market;

How does timely, accurate, and well-organized financial information benefit investors and creditors?

• It helps them make informed decisions about investing in the company;

• It allows them to set company prices;

• It enables them to hire new employees;

• It helps them design new products;