WorksheetsM5 Business Practice
Total questions: 76
Worksheet time: 1hrs 16mins
An individual who has had specialized training in accounting procedures.
accountant
owner’s equity
wholesaler
finance:
In order for a business to be successful it must make good financial decisions as well as control its finances through accounting.
True
False
_____ Also known as stockholders, that invest their money in businesses with the goal or earning ing more money back than invested
Investors
Creditors
Government
(a) , a term often used interchangeably with (b) , is the function that involves all money and money (c) matters.
The total value of the business.
finance
net worth
owner’s equity
assets
Managers use accounting to make financial decisions and plans for the business
True
False
balance sheet
In business, the function that involves all money and money management matters.
A sum of money paid to an investor or stockholder as earnings on an investment.
A financial statement that captures the financial condition of the business at that particular moment.
Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders.
External users operate outside the business walls and have distinct operational uses of financial accounting information.
True
False
A process or series of steps that businesses complete to maintain their financial records effectively.
accountant
accounting
accounting cycle
accounting standards
______ Use financial accounting information to
Determine if a business is paying the correct amount of taxes
Stay on top of industry trends
Make economic forecasts
fund out if businesses is complying with regulations
Investors
Government
Creditors
Managers
A business’s net income; the decisive point
inputs
holding cost
bottom line
operations
Businesses must evaluate all of their (a) to get an understanding of their (b) financial status and their (c) financial status.
______ Individuals or businesses that lend money and collect borrowed money form businesses
Government
Creditors
Investors
In the operations function—resources utilized
logistics
inventory control
inventory
inputs
holding cost
The money it takes to keep inventory in stock
In the operations function—resources utilized
All the stock that a business has on hand
Tracking the amount, the kind, and the value of inventory that a business has on hand
- total expenses = net profit/loss
net sales
cost of goods
gross profit
sales revenue
inventory
In the operations function—resources utilized
All the stock that a business has on hand
Tracking the amount, the kind, and the value of inventory that a business has on hand
Refers to managing the flow of goods and services from production to consumption
(a) focuses on (b) decisions while (c) focuses on (d) activities.
External users of accounting might be... (PICK 3)
managers
investors
creditors
the government
Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders.
capital investment decisions
accounting standards
dividends
owner’s equity
(a) received by a business or an individual from outside (b) is (c) .
net sales - cost of goods = gross profit
true
false
Finance
The total value of the business.
In business, the function that involves all money and money management matters.
A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement.
A sum of money paid to an investor or stockholder as earnings on an investment.
sales revenue - operating expenses = net income
true
false
Revenues - Expenses = Bottom Line
true
false
_____ Use financial accounting information to guide investment decisions:
Look to invest in business that show growth
Read annual and financial reports to decide if a business will be able to pay dividends
Managers
Creditors
Investors
Government
The production activity that determines the sequence of the steps in the production process
routing
scheduling
timing
purchasing
The (a) is to boost the company's (b) and reduce its risks. The (c) is to provide accurate (d) about the company's (e) at any point in time.
Corporate responsibility of safety and security falls on the operations function
Maintenance and Repairs
Safety and Security
Scheduling
Logistics
(a) tells the (b) story of a (c) to include the (d) both in and out.
The production activity that establishes the timetable to be followed in production
Expense Control
Scheduling
Logistics
Safety and Security
quality control
The production activity that determines the sequence of the steps in the production process
Refers to managing the flow of goods and services from production to consumption
Ensuring the degree of excellence of a good or service
Tracking the amount, the kind, and the value of inventory that a business has on hand
During step five, businesses must take all financial information and transform it in a way that is easy to read and understand by ______. The most important financial statements business use are the balance sheet, the income statement , and the cash flow statement.
journalizing transactions
balancing the books
preparing financial statements
analyzing financial transactions
Managing the flow of goods and services from production to consumption
Maintenance and Repairs
Bottom Line
Logistics
Scheduling
Tracking Business Performance Formula (Multiple Correct Answers)
Evaluate Accounting Records by determining are goals being met + Review Accounting Records to determine if there is a profit
Evaluate Accounting Records by determining whether or not their market can be expanded + Review Accounting Records to determine previous years data to estimate future income and expenses
Evaluate Accounting Records by determining will loans need to be obtained + Review Accounting Records to determine sales revenues
Evaluate Accounting Records by determining how much taxes are owed + Review Accounting Records to determine cost of operating expenses
The most important decisions that financial managers have to make are capital investment decisions. These are decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders. Capital investment decisions are generally long-term investments that will last for years into the future.
true
false
All the stock that a business has on hand and is its inventory
Logisitics
Purchasing
Inventory
Quality Control
The buying of goods and services for a business
scheduling
routing
quality control
purchasing
The (a) of keeping financial (b) is accounting.
Assets- Liabilities = Owner's Equity is _____
balance sheet
income statement
owner's equity
net income
Ensuring the degree of excellence of a good or service
Quality Control
Inventory Control
Purchasing
Site Location and Layout
In the operations function - goods or services
bottom line
purchasing
outputs
inputs
______ Use financial accounting information to determine a business's financial status
Evaluate a business's financial data before extending credit
Prefer to lend money to business that are profitable
Want certainty that they will be paid on time
Creditors
Investors
Government
Managers
accounting standards
Finance activity involving making decisions about financing.
The process of keeping financial records.
A process or series of steps that businesses complete to maintain their financial records effectively.
Rules that accountants must follow when preparing financial statements.
The buying of goods and services for a business
Inventory
Purchasing
Quality Control
Inventory Control
operations
The day-to-day activities for continued business functioning
The buying of goods and services for a business
Ensuring the degree of excellence of a good or service
The production activity that determines the sequence of the steps in the production process
A sum of money paid to an investor or stockholder as earnings on an investment.
dividends
expenses
finance
net worth
Finance activity involving making decisions about a firm’s investments.
capital investment decisions
finance
acquisition of funds
administration of assets
The location of a business is solely determined by the owner and/or operations manager.
Inventory
Site Selection and Layout
Purchasing
Quality Control
Finance activity involving making decisions about financing.
acquisition of funds
administration of assets
accounting cycle
assets
_____ is the last step in the accounting cycle. After financial statement are prepared business can determine which temporary accounts, if any, need to be closed and then transfer those account balance into permanent accounts such as owner's equity. Once the books have been closed, the accounting cycle starts over.
closing the books
opening the books
analyzing financial statements
posting to ledgers
Businesses must plan how to manufacture goods or provide services that utilize people, places, materials, equipment and information (inputs) before production even begins.
Production Planning
Site Selection and Layout
Purchasing
Quality Control
logistics
Refers to managing the flow of goods and services from production to consumption
The day-to-day activities for continued business functioning
In the operations function - goods or services
The buying of goods and services for a business
The following are operations activities
purchasing
Logistics
expense control
maintenance and repairs
The next step in the accounting cycle, _______, involves recording each transaction in its appropriate journal. The journal is a special book or computer program in which transactions are recording in te order that they occur. Before technology, many businesses hired accountants who had to complete this task by hand.
journalizing transactions
analyzing financial transactions
balancing the books
preparing financial statements
(a) : The amount an owner has (b) in the business (c) or (d) profits and losses.
_______ Different governmental agencies monitor a business's financial records for account fo taxation, labor and corporate laws
Creditors
Government
Investors
Types of Output: (Click all that apply)
Materials
Electronics
Energy
Food
The production activity that establishes the timetable to be followed in production
timing
scheduling
routing
quality control
Tracking the amount, the kind, and the value of inventory that a business has on hand
operations
logistics
inventory control
outputs
cash flow statement
Debts that the business owes.
Money received by a business or an individual from outside sources.
A financial summary with estimates as to when, where, and how much money will flow into and out of a business.
A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement.
A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement.
cash flow statement
balance sheet
liabilities
income statement
Label the Accounting Cycle
Closing the Books
Preparing Financial Statements
Analyzing Financial Transactions
Journalizing Transactions
Posting to Ledgers
Balancing the Books
Types of Inputs: (Click all that apply)
labor
clothes
capital
cars
Planning for the Future Formula (Multiple Correct Answers)
Evaluate Accounting Records by determining how to increase their staff + Review Accounting Records to determine previous years data to estimate future income and expenses
Evaluate Accounting Records by determining what can happen + Review Accounting Records to determine return on investments
Evaluate Accounting Records by determining are there any trends in sales + Review Accounting Records to determine cost of goods sold
Evaluate Accounting Records by determining how to enlarge its product mix + Review Accounting Records to determine previous years data to estimate future income and expenses
Once transactions have been recorded, they are then categorized and posted to a ledgers, also referred to as an accounting record, for a specific department or area of the business
posting to ledgers
balancing the books
journalizing transactions
preparing financial statements
How a Business (a) : (b) ( (c) ), (d) ( (e) )
Financial Statement
A financial summary with estimates as to when, where, and how much money will flow into and out of a business.
The process of keeping financial records.
A summary of accounting information.
In business, the function that involves all money and money management matters.
(a) : (b) of (c) that a business owns.
to check the accuracy of journal recordings and ledger entries, business rely on step four of the accounting cycle, ______. Businesses establish what is called a trial balance after journal recordings have been posted to the business's ledger(s). Trial balances include current balances of a business's different account found in ledgers.
preparing financial statements
balancing the books
closing the books
posting to ledgers
business managers use a form of accounting known as _______
managerial accounting
financial accounting
operational accounting
business accounting
To begin the accounting cycle, business collect source documents including checks, receipts, invoices, and purchase order to _______ such as sales, purchases, and returns
posting to ledgers
analyze financial transactions
preparing financial statements
journalizing transactions
In the production process, determining when materials will arrive at a certain destination and how long they will stay there
timing
inventory
scheduling
outputs
The (a) that a business (b) ; also called (c) .
Primary users of accounting information inside the company are usually...
the government
employees
managers
investors
liabilities
A sum of money paid to an investor or stockholder as earnings on an investment.
The process of keeping financial records.
Debts that the business owes.
Money received by a business or an individual from outside sources.
