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- 1. Multiple Choice
A business's liabilities total $87,420. Its assets amount to $105,390. What is the value of the owner's equity?
$12,056
$17,970
$69,450
$82,949
- 2. Multiple Choice
The role of finance in business often involves
monitoring expenses (looking for lower cell phone bills)
paying employees (calculating paychecks)
buying supplies (ordering paper for the printer)
obtaining funds (finding money for the business to use)
- 3. Multiple Choice
Which of the following is a primary responsibility of a company's financial function:
material allocation (deciding what product needs what materials)
product sourcing (finding supplies to make products at lower costs)
cash management (deciding where to put cash to make the business money)
sales forecasting (predicting what future sales will look like)
- 4. Multiple Choice
The finance function would definitely be involved in a decision regarding
public relations and policy (dealing with public perception of business)
new business projects and strategies (deciding what direction a business should take in the future)
personal selling (setting individual sales goals for each employee)
training methods (training new employees)
- 5. Multiple Choice
The price of raw materials used in manufacturing a product was double what had been projected for the year. Which of the following could the business determine by analyzing its financial information:
supply and demand (how much products businesses supply vs. how many consumers demand)
Equipment costs (how much it would cost to buys a new piece of machinery)
variances (fluctuation that results what a business planned for and what actually happened)
Errors in forecasting (mistakes that were made in calculating a budget or plan for the future)
- 6. Multiple Choice
Which of the following is a way that businesses can use financial information:
To identify trends
To select selling strategies
To conduct focus groups
To create an economic system
- 7. Multiple Choice
The OVERALL purpose of accounting is to
keep track of sales
compile business expenses
maintain accurate reports
control the finances of a business
- 8. Multiple Choice
In order for an accounting system to be useful to the business, the accounting information it contains must be
approved by the CEO
accurate and up-to-date
posted by an accountant
recorded using the accrual method
- 9. Multiple Choice
The role of accounting is business is to
predict a company's stock price
preform record keeping for a business
plan how to use money a business has
- 10. Multiple Choice
Things of value a business owns
Assets
Liabilities
Owner's equity
- 11. Multiple Choice
Things a business Owes
Assets
Liabilities
Owner's equity
- 12. Multiple Choice
The owner's share of a business
Assets
Liabilities
Owner's equity
- 13. Multiple Choice
An example of an asset is
Accounts payable
cash
investment
- 14. Multiple Choice
An example of an liabilitiy is
accounts payable
cash
investment
- 15. Multiple Choice
An example of an owner's equity is
accounts payable
cash
investment
- 16. Multiple Choice
How many accounts (minimum) need to be used for each business transaction?
1
2
4
No minimum
- 17. Multiple Choice
In accounting, which term is associated with the LEFT side?
Debit
Credit
Asset
Liability
- 18. Multiple Choice
In accounting, which term is associated with the RIGHT side?
Debit
Credit
Asset
Liability
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