Business Essentials Unit 4.0 Obj 4.01 SG

Balance sheet

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?

working capital management

A company's current balance of assets and liabilities falls under the focus of

recordkeeping activities

Accounting is distinct from finance because its main focus is on

money

Finance is the business function that involves managing

Cash conversion cycle

Which of the following is a key component of managing working capital:

Return on capital

Which of the following is a measure of how well a business generates cash flow

Accounting standards

Which of the following makes comparisons of the financial conditions at multiple organizations possible:

accounts payable

Money the business owes is known as

acquisition of funds

Decisions about financing refer to the

capital budgeting

Determining which projects a business should invest in is known as

How to finance investments

Which of the following is a capital investment decision:

It plans and controls spending

How does the finance function relate to company spending?

accounts receivable

Money owed to the business is known as

equity

Selling shares in the company to raise money for a new venture is referred to as __________ funding.

investments

The administration of assets refers to decisions about

as short as possible

The cash conversion cycle should be

in line with organizational priorities

The finance function ensures that the company's financial goals are

Budgeting

The finance function is usually responsible for which of the following processes:

new business projects and strategies.

The finance function would definitely be involved in a decision regarding

reduce risks

The goals of the finance function are to ensure profitability and

information systems

To keep communication flowing with other departments, the finance function depends on

Income statement

What accounting record would summarize a business's profit or loss for a previous year?

growing in value

When return on capital is positive, the company is

Assets, liabilities, owner's equity

Which of the following categories of information are found on a balance sheet:

Cash flow statement

Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year: