Business Essentials 4.01 Money Matters

Finance is the business function that involves managing

• Information

• Money

• Marketing

• Production

The goals of the finance function are to ensure profitability and

• Advertise products

• Manufacture raw material

• Give out information

• Reduce risks

Accounting is distinct from finance because its main focus is on

• Recordkeeping activities

• Money management decision

• Administration of assets

• Acquisition of funds

The administration of assets refers to decisions about

• Accounting

• Spending

• Investments

• Financing

Decisions about financing refer to the

• Accounts receivable

• Acquisition of funds

• Administration of assets

• Accounting department

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

• Acceptable to the marketing department

• Related to product development

• Easy to accomplish

• In line with organizational priorities

How does the finance function relate to company spending?

• It plans and controls spending

• It produces report about spending

• It spends on investments only

• It does not relate to spending

Money the business owes is known as

• Equity

• Assets

• Accounts payable

• Accounts receivable

Money owed to a business is known as

• Equity

• Assets

• Accounts payable

• Accounts receivable

The finance function is usually responsible for which of the following processes:

• Budgeting

• Manufacturing

• Operations

• Research