4.01 accounting quiz Flashcards
Accounting is distinct from finance because its main focus is on
acquisition of funds.
administration of assets.
money management decisions.
recordkeeping activities.
recordkeeping activities.
Which of the following is a capital investment decision:
How to finance investments
How to handle accounts payable
How to manage cash flow
How to manage inventory
How to finance investments
Decisions about financing refer to the
accounts receivable.
accounting department.
acquisition of funds.
administration of assets.
acquisition of funds.
Selling shares in the company to raise money for a new venture is referred to as ___________ funding.
accounts payable
debt
dividend
equity
equity
The administration of assets refers to decisions about
accounting.
financing.
investments.
spending.
investments.
Which of the following is a measure of how well a business generates cash flow:
Accounts payable
Accounts receivable
Capital structure
Return on capital
Return on capital
Money the business owes is known as
assets.
equity.
accounts payable.
accounts receivable.
accounts payable.
The finance function is usually responsible for which of the following processes:
Budgeting
Manufacturing
Operations
Research
Budgeting
Which of the following is a key component of managing working capital:
Capital budgeting
Capital structure
Cash conversion cycle
Financing
Cash conversion cycle
Determining which projects a business should invest in is known as
capital budgeting.
capital structuring.
return on capital.
the cash conversion cycle.
capital budgeting.
The goals of the finance function are to ensure profitability and
advertise products.
give out information.
manufacture raw materials.
reduce risks.
reduce risks.
The finance function would definitely be involved in a decision regarding
hiring.
new business projects and strategies.
personal selling.
public relations and publicity.
new business projects and strategies.
A company’s current balance of assets and liabilities falls under the focus of
capital investment decisions.
return on capital.
the cash conversion cycle.
working capital management.
working capital management.
To keep communication flowing with other departments, the finance function depends on
accounts receivable.
information systems.
marketing.
production.
information systems.
When return on capital is positive, the company is
growing in value.
losing value.
low on cash.
paying out dividends.
growing in value.
