Accounting
The process of keeping the financial records of a business is known as
What is accounting
What is the accounting formula?
Assets - liabilities = owners equity
or
Assets = Liabilities + owners equity
Finance is the business function that involves managing
What is money
Marketing links producers to
What is customers
What are 4 types of business ownership?
What is sole proprietor, partnership, LLC, corporation. Also franchise.
The overall purpose of accounting is to
What is control the expenses of a company
What are the categories found on a balance sheet?
What is assets, liabilities, and owners equity
Accounting is distinct from finance because its main focus is on (multiple choice)
a. recordkeeping activities.
b. administration of assets.
c. money management decisions.
d. acquisition of funds.
According to the marketing concept, which option demonstrates customer orientation? (multiple choice)
a. Convincing a buyer to buy
b. Finding out what a buyer wants
c. Researching a firm’s competitors
d. Advertising the features of a product
What is a limited partnership?
A limited partnership is when two or more partners go into business together, with the limited partners only liable up to the amount of their investment.
Why are accurate accounting records important to a business? (multiple choice)
A. They prevent any financial losses.
B. They show the business how it is doing.
C. They increase the return on investments.
D. They give the business an image of success.
Define assets, liabilities, and owners equity
Assets is anything you own
Liabilities is anything you owe
Owners equity is your net worth
How does the finance function relate to company spending?
What is it plans and controls spending
What is the most common reason for businesses to search for ways to make their products better and cheaper:
What is competition
An characteristic of being a sole proprietor is you have to share the profit....true or false
What is false
For an accounting system to be useful to the business, the accounting information it contains must be...(multiple choice)
a. accurate and up to date.
b. approved by the chief executive officer.
c. posted by an accountant.
d. recorded using the accrual method.
What accounting record would summarize a business’s profit or loss for a previous year?
What is an income statement?
To keep communication flowing with other departments, the finance function depends on (multiple choice)
a. accounts receivable.
b. marketing.
c. information systems.
d. production.
What are the 4 P's of the marketing mix?
What is product, price, promotion, place?
What is a franchise?
A franchise is a business that gives the right to another person or business to sell goods or services using its name. It does this by providing the person or other business with a license.
What are the first three MAJOR steps in the accounting cycle?
What is Analyze, journalize, and post
A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. TRUE OR FALSE
What is true
Selling shares in the company to raise money for a new venture is referred to as ___________ funding.
What is equity?
The purpose of communicating with customers is to
a. gather participants for a survey.
b. determine prices.
c. befriend customers.
d. attract customers’ interest.
A company decided to sell stock to raise capital. Under what form of business organization does the company operate?
What is a corporation?