WorksheetsBusiness Essentials - 4.01
Total questions: 21
Worksheet time: 11mins
The process of keeping the financial records of a business is known as:
Financing
Controlling
Accounting
Bookkeeping
Why are accurate accounting records important to a business?
They show how the business is doing.
They increase the return on investments
They prevent any financial losses
They give the business an image of success.
A creditor is most likely to examine a business's financial accounting records if the business is
complying with regulatios
applying for a bank loan
using cash accounting
selecting a new market
For an accounting system to be useful to the business, the accounting information it contains must be
recorded using the accrual method
posted by an accountant
accurate and up to date
approved by the CEO
Which of the following is a requirement for a good accounting system:
It should be updated annually
It should provide needed information quickly
It should eliminate the end for an accountant
It should be replaced every two or three years
Which of the following is a true statement:
Bookkeeping is the same as accounting
Bookkeeping is limited to information on sales
Bookkeeping does not use computers
Bookkeeping records business transactions
Which of the following presents the first three steps in the accounting cycle in the correct order:
Post, journalize, and analyze
Analyze, journalize, and post
Post, analyze, and jouranlize
Analyze, post, and journalize
Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year:
Cash flow statement
Income statement
Balance sheet
Bank statement
Finance is the business function that involves managing
Money
marketing
information
production
The goals of the finance function are to ensure profitability and
advertise products
reduce risks
manufacture raw materials
gives out information
Accounting is distinct from finance because its main focus is on
money management decisions
recordkeeping activities
acquisition of funds
administration of assests
How does the finance function relate to company spending?
it produces reports about spending
it plans and controls spending
it spends on investments only
it does not relate to spending
To keep communication flowing with other departments, the finance function depends on:
production
information systems
marketing
accounts receivable
The finance function is usually responsible for which of the following processes:
Research
Operations
Budgeting
Manufacturing
The finance function would definitely be involved in a decision regarding
new business projects and strategies
new relations and publicity
hiring
personal selling
A company's current balance of assets and liabilities falls under the focus of
return on capital
capital investment decisions
the cash conversion cycle
working capital management
Determining which projects a business should invest in is know as
the cash conversion cycle
capital budgeting
return on capital
capital structuring
Which of the following is a key component of managing working capital:
Financing
Capital structure
Capital budgeting
Cash conversion cycle
The cash conversion cycle should be
on an upward trend
at equilibrium
as long as possible
as short as possible
Which of the following is a measure of how well a business generates cash flow:
capital structure
return on capital
accounts receivable
accounts payable
When return on capital is positive, the company is
losing value
low on cash
paying out dividends
growing in value
