POBF 6.00 Quiz

What is one of the main reasons why businesses need to keep accurate accounting records?

• to follow procedures

• to control expenses

• to eliminate risks

• to regulate taxes

Businesses would not be able to determine if they are meeting their financial goals without accurate:

• production plans

• marketing plans

• accounting systems

• distribution systems

Businesses use the information collected through the accounting process to prepare accurate:

• balance sheets

• purchase orders

• inventory forms

• promissory notes

Assets a company already owns and can use to finance a new venture are called:

• accounts payable

• dividends

• return on capital

• equity

When businesses invest funds to expand, they are involved in the process of:

• selling

• depreciation

• finance

• capitalism

The role of finance in business often involves:

• monitoring expenses

• paying employees

• buying supplies

• obtaining funds