M5 Business Practice

An individual who has had specialized training in accounting procedures.

• accountant

• owner’s equity

• wholesaler

• finance:

In order for a business to be successful it must make good financial decisions as well as control its finances through accounting.

• True

• False

_____ Also known as stockholders, that invest their money in businesses with the goal or earning ing more money back than invested

• Investors

• Creditors

• Government

​ (a)   , a term often used interchangeably with ​ (b)   , is the function that involves all money and money ​ (c)   matters.

• Finance
• accounting
• management
• decision
• financial
• managing
• account

The total value of the business.

• finance

• net worth

• owner’s equity

• assets

Managers use accounting to make financial decisions and plans for the business

• True

• False

balance sheet

• In business, the function that involves all money and money management matters.

• A sum of money paid to an investor or stockholder as earnings on an investment.

• A financial statement that captures the financial condition of the business at that particular moment.

• Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders.

External users operate outside the business walls and have distinct operational uses of financial accounting information.

• True

• False

A process or series of steps that businesses complete to maintain their financial records effectively.

• accountant

• accounting

• accounting cycle

• accounting standards

______ Use financial accounting information to

Determine if a business is paying the correct amount of taxes

Stay on top of industry trends

Make economic forecasts

fund out if businesses is complying with regulations

• Investors

• Government

• Creditors

• Managers