Money Matters LAP Test

1. Finance is the business function that involves managing

• 1. money.

• 1. information.

• 1. marketing.

• 1. production.

1. The goals of the finance function are to ensure profitability and

• 1. give out information.

• 1. reduce risks.

• 1. advertise products.

• 1. manufacture raw materials.

1. Accounting is distinct from finance because its main focus is on

• 1. administration of assets.

• 1. acquisition of funds.

• 1. recordkeeping activities.

• 1. money management decisions.

1. The administration of assets refers to decisions about

• accounting.

• 1. spending.

• 1. investments.

• 1. financing.

1. Decisions about financing refer to the

• 1. administration of assets.

• 1. accounting department.

• 1. accounts receivable.

• 1. acquisition of funds.

1. The finance function ensures that the company’s financial goals are

• 1. acceptable to the marketing department.

• 1. related to product development.

• 1. easy to accomplish.

• 1. in line with organizational priorities.

1. How does the finance function relate to company spending?

• 1. It spends on investments only.

• 1. It does not relate to spending.

• 1. It produces reports about spending.

• 1. It plans and controls spending.

1. Money the business owes is known as

• 1. equity.

• 1. assets.

• 1. accounts payable.

• 1. accounts receivable.

1. Money owed to the business is known as

• 1. accounts payable.

• 1. accounts receivable.

• 1. equity.

• 1. assets.

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

• information systems.

• accounts receivable.

• 1. marketing.

• 1. production.