PBMF: 17.1A Finance & Accounting Transactions

Which of these is NOT a core goal of successful businesses?

• Pay Debts

• Maximizing employee leisure time
• Provide Return for Investors

• Finance Future Growth

Financial planning is the process of setting ​ (a)   goals and developing ​ (b)   to reach them.

• financial
• plans
• emotional
• social
• ideas

The primary goal of business is to generate _____.

Match each word or phrase to the correct definition.

• expenses

• the costs involved in operating a business

• financial management

• the difference between the income earned and expenses incurred by a business during a specific period of time.

• profit

• a process used to manage the financial resources of a business

Accounting is the ​ (a)   of recording business ​ (b)   and ​ (c)   , verifying, and reporting the ​ (d)   .

• system
• transactions
• analyzing
• results
• steps
• profits

What is the purpose of accounting?

• To calculate taxes owed by individuals.
• To keep records of transactions.

• To create marketing strategies for businesses.
• To create financial statements and reports on a regular basis.

Accounting is often called the language of business.

• True

• False

Who uses accounting information?

(Choose all that apply)

• taxing authorities

• managers

• lending institutions

The rules, standards, and practices businesses follow to record and report financial information is called ____.

• Generally Accepted Accounting Principles (GAAP)
• Corporate Governance Guidelines
• Financial Accounting Standards Board (FASB)
• International Financial Reporting Standards (IFRS)

An _____ is a review of the financial statements of a business and the accounting practices that were used to produce them.