Business Essentials 4.01 Show Me The Money

Front

The process of keeping 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 how the business 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

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Accurate and up to date

Front

What did the computerized accounting system lack that allowed two employees to steal $50,000?

Back

Protection from theft and fraud

Front

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

Back

Source documents

Front

What type of accounting method would most likely be used by a small business owner who does not offer credit?

Back

Cash method