LAP FI 354 S 4.01

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 materials

• give out information

• reduce risks

Accounting is distinct from finance because its main focus is on

• recordkeeping activities

• money management decisions

• 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 spends on investments only

• It produces reports about spending

• It does not relate to spending

Money the business owes is known as

• equity

• accounts payable

• assets

• accounts receivable

Money owed to the business is known as

• equity

• accounts payable

• assets

• accounts receivable

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

• accounts receivable

• marketing

• information systems

• production