WorksheetsBusiness Essentials 4.01 ACCT Review
Total questions: 20
Worksheet time: 10mins
Finance is the business function that involves managing
information.
marketing.
money.
production.
The goals of the finance function are to ensure profitability and
advertise products.
give out information.
manufacture raw materials.
reduce risks.
Accounting is distinct from finance because its main focus is on
acquisition of funds.
administration of assets.
money management decisions.
recordkeeping activities.
The administration of assets refers to decisions about
accounting.
financing.
investments.
spending.
Decisions about financing refer to the
accounts receivable.
accounting department.
acquisition of funds.
administration of assets.
The finance function ensures that the company’s financial goals are
acceptable to the marketing department.
easy to accomplish.
in line with organizational priorities.
related to product development.
How does the finance function relate to company spending?
It does not relate to spending.
It plans and controls spending.
It produces reports about spending.
It spends on investments only.
Money the business owes is known as
assets.
equity.
accounts payable.
accounts receivable.
Money owed to the business is known as
assets.
equity.
accounts payable.
accounts receivable.
To keep communication flowing with other departments, the finance function depends on
accounts receivable.
information systems.
marketing.
production.
The finance function is usually responsible for which of the following processes:
Budgeting
Manufacturing
Operations
Research
The finance function would definitely be involved in a decision regarding
hiring.
new business projects and strategies.
personal selling.
public relations and publicity.
Which of the following is a capital investment decision:
How to finance investments
How to handle accounts payable
How to manage cash flow
How to manage inventory
A company’s current balance of assets and liabilities falls under the focus of
capital investment decisions.
return on capital.
the cash conversion cycle.
working capital management.
Determining which projects a business should invest in is known as
capital budgeting.
capital structuring.
return on capital.
the cash conversion cycle.
Selling shares in the company to raise money for a new venture is referred to as ___________ funding.
accounts payable
debt
dividend
equity
Which of the following is a key component of managing working capital:
Capital budgeting
Capital structure
Cash conversion cycle
Financing
The cash conversion cycle should be
as long as possible.
as short as possible.
at equilibrium.
on an upward trend.
Which of the following is a measure of how well a business generates cash flow:
Accounts payable
Accounts receivable
Capital structure
Return on capital
When return on capital is positive, the company is
growing in value.
losing value.
low on cash.
paying out dividends.
