Topic 2 : Business Management and Basic Accounting

What is the primary goal of business management?

• To maximize profits

• To manage employee satisfaction.

• To achieve organizational objectives

• To reduce costs

In accounting, what does the term "assets" refer to?

• Liabilities

• Owner's equity

• Resources owned by a business

• Revenues earned

Which of the following is NOT a function of management?

• Planning

• Organizing

• Selling

• Controlling

What is the accounting equation?

• Assets = Liabilities + Expenses

• Assets = Liabilities + Owner's Equity

• Assets + Liabilities = Owner's Equity

• Assets = Revenues + Expenses

Which financial statement shows a company’s revenues and expenses over a period?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• Statement of Retained Earnings

What is the purpose of a budget in business management?

• To increase expenses

• To forecast financial performance

• To manage employee payroll

• To eliminate all costs

Which of the following represents liabilities?

• Cash

• Accounts payable

• Inventory

• Equipment

What is the term for the difference between total revenues and total expenses?

• Net worth

• Profit

• Cash flow

• Equity

What does GAAP stand for?

• Generally Accepted Accounting Principles

• General Accounting and Audit Procedures

• Government Auditing and Accounting Practices

• Global Accounting and Analysis Protocols

Which of the following is a qualitative measure of performance?

• Revenue growth

• Customer satisfaction

• Cost reduction

• Market share