FP Obj 1.03 Why Money Matters

Finance is the business function that involves managing

• production.

• money.

The goals of the finance function are to ensure profitability and

• manufacture raw materials.

• reduce risks.

Accounting is distinct from finance because its main focus is on

• money management decision

• recordkeeping activities.

The administration of assets refers to decisions about

• investments.

• accounting.

Decisions about financing refer to the

• accounting department.

• acquisition of funds.

The finance function ensures that the company’s financial goals are

• related to product development.

• in line with organizational priorities.

How does the finance function relate to company spending?

• It plans and controls spending.

• It produces reports about spending.

Money the business owes is known as

• accounts payable.

• assets.

Money owed to the business is known as

• accounts receivable.

• equity.

To keep communication flowing with other departments, the finance function depends on

• marketing.

• information systems.