Business Concepts
All about the functions
Ratios
Internal Controls
Strategies
100
the indefinite life of an enterprise is subdivided into time periods (accounting periods) which are usually of equal length for the purpose of preparing financial reports on financial position, performance and cash flows.
What is periodicity
100
These people ensure that products appear in the right store, or on a website, at the appropriate time and in the correct quantities. This involves working closely with the buying teams to accurately forecast trends, plan stock levels and monitor performance.
What is a merchandiser
100
A liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. The equation is current assets/current liabilities.
What is a current ratio
100
source documents, books of original entry, general ledger, reports, bank statements
What is maintaining adequate documents and records
100
The strategy of comparison of what is actually produced or performed with what can be achieved with the same consumption of resources (money, time, labor, etc.).
What is the efficiency strategy
200
A currency unit (such as the dollar, euro, peso, rupee) issued as a coin or banknote, and used as a standard unit of value and a unit of account
What is a monetary unit
200
Entity that makes a good through a process involving raw materials, components, or assemblies, usually on a large scale with different operations divided among different workers. Commonly used interchangeably with producer.
What is a manufacturer
200
A profitability ratio that compares the gross margin of a business to the net sales. This ratio measures how profitable a company sells its inventory or merchandise. In other words, this is essentially the percentage markup on merchandise from its cost.
What is gross margin ratio
200
Keeping money in the bank securely, keeping a safe that has certain files, etc. IT IS UNDER YOU'RE CONTROL
What is physically controlling assets and documents
200
A strategy that is capable to adapt to changes in the external environment. The organization has to identify major changes in the environment, quickly change commitment of resources to new courses of action to counter the change, and to identify markers in order to restore to previous commitments when the external environment is back to the initial state.
What is the flexible strategy
300
A basic underlying assumption in accounting. The assumption is that a company or other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on.
What is a going concern
300
The process of acquiring and utilizing funds of a business. This consists of raising , providing , managing of all the money , capital or funds of any kind to be used in connection with the business .
What is a finance function
300
This is expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The equation is (Net Profit / Cost of Investment) x 100.
What is return on investment
300
All transactions and activities should be carried out and approved by employees acting within their range of knowledge and proper span of control. This serve as a proactive approach for preventing invalid transactions from occurring.
What is requiring proper authorization
300
Uncertain environment and outward focus, this sort of strategy is not as efficient as the others
What is loose strategy
400
This entity states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.
What is a business entity
400
A function that is a critical component of employee well-being in any business, no matter how small. Responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.
What is human resource function
400
A measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. Equation is Net Income/Shareholders' Equity
What is return on Owner's Equity
400
A concept relating to separation of duties, a control method in business and accounting used to prevent fraud and limit the consequences of errors. Separation of duties means that more than one person should be required to complete certain tasks if they are able to complete one of these tasks by themselves.
What is separating incompatible functions
400
A management approach that is the exact opposite of flexibility. This method means that managers are content to leave employees and resources where they are, even in the face of adverse threats. The idea is to "ride out the storm" by creating a stable and secure organization that can survive any challenge.
What is a rigid strategy
500
A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers
What is service business
500
A mathematical equation or graph that shows the relationship between physical inputs and physical outputs for a business. This function for a business typically focuses on the physical and so does not take into account non physical aspects of production like prices.
What is production function
500
a measure of how well a company can meet its short-term financial liabilities. Also known as the acid-test ratio. The equation is (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.
What is a quick ratio
500
assets, liabilities, and owners equity
What is the balance sheet (BONUS)
500
Balance Sheet, Income Statement and Cash Flow Statement
What are the three main financial statements that a business uses (BONUS)
M
e
n
u