BUSN 212 - Ch1

_______________ is an information system that measures, processes, and communicates financial information.

• management

• accounting

• business

• financial

Accounting is NOT a link between business activities and decision makers

• True

• False

Management must have a good understanding of accounting to set financial goals and make financial decisions.

• True

• False

Management must only understand how accounting information is compiled and processed but also realize that accounting information is imperfect and should be interpreted with caution.

• True

• False

_____________ is an economic unit that aims to sell goods and services to customers at prices that will provide an adequate return to its owners.

• Liquidity

• Accounting

• business

• Owner

Select the goals of business .

• Financing

• Investing

• Liquidity

• Profitability

what is the Profitability ?

• having enough cash to pay debts as they come due

• spending the capital a company receives in productive ways that help it achieve its objectives

• earning a sufficient return to maintain owner interest

• none

what is the Liquidity ?

• obtaining funds to begin operations and to continue operating

• spending the capital a company receives in productive ways that help it achieve its objectives

• having enough cash to pay debts as they come due

• earning a sufficient return to maintain owner interest

___________ selling goods and services to customers; employing managers and workers; buying and producing goods and services; and paying taxes

• Financing

• Investing

• Operating

______________ spending the capital a company receives in productive ways that help

it achieve its objectives

• Financing

• Investing

• Activity

• Operating