BE Unit 4.00 EOC Review

Front

The process of keeping the financial records of a business is known as

Back

accounting

Front

The overall purpose of accounting is to

Back

control the finances of the business.

Front

Why are accurate accounting records important to a business?

Back

They show the business how it is doing

Front

Which group makes regular use of a business’s managerial accounting information? (Options: Managers, Customers, Creditors, Investors)

Back

Managers

Front

A creditor is most likely to examine a business’s financial accounting records if the business is applying for a bank loan.

Back

applying for a bank loan

Front

Riley is an employee of the federal government who studies the financial reports of major businesses in a specific industry. The government’s purpose in assigning this task to Riley is to

Back

identify trends in the industry

Front

For an accounting system to be useful to the business, the accounting information it contains must be

Back

accurate and up to date

Front

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 need for an accountant,
It should be replaced every two or three years

Back

It should provide needed information quickly

Front

Two employees used a business’s computerized accounting system to change some records and stole $50,000 because the accounting system lacked which of the following: Protection from theft and fraud, An affordable price, A manual system as backup, Printed financial statements?

Back

Protection from theft and fraud

Front

Checks, receipts, invoices, and purchase orders are examples of

Back

source documents.