BF 4.01 Accounting and Finance

What do managers use for financial planning purposes?

• accounting information

• business policies

• operating standards

• production schedules

Which of the following would be included in a business's income statement?

• operating expenses

• liabilities

• cash on ahnd

• net worth

Why are accurate accounting records important to a business?

• they prevent and financial losses

• they show how the business is doing

• they increase the return on investments

• they give the business an image of success

Which of the following makes comparisions of the financial conditions at multiple organizations possible?

• bookkeepong

• source documents

• accounting standards

• trail balance

Which of the following categories of information are found on a balance sheet?

• income, expenditures, profit

• assets, liabilities, owner's equity

• assets, liabilities, margin

• revenues, expenses, profit

A bank denies a business owner's application for credit saying :We feel that you would be unable to make the monthly payment because of your other debts." What financial report did the bank review?

• budget

• balance sheet

• income statenebt

• operating budget

What accounting record would summarize a business's profit or loss for a previous year?

• bank statement

• inventory record

• income statement

• balance sheet

Which of the following financial reports provides estimates of when, where, and how much money will come into and oit of a business next year?

• balance sheet

• cash flow statement

• income statement

• bank statement

Which of the following business activities monitors and controls the firm's revenue and debt?

• finance

• purchasing

• human resources management

• payroll

Which of the following is true of working capital management?

• it deals with accounts payable and receibvable

• it concerns long-term decisions

• it decides how investments will be financed

• it determines which projects the business will invest in