Principles of Finance Exam 1

accurate and up-to-date.

In order for an accounting system to be useful to the business, the accounting information it contains must be

transactions.

Teresa is a new employee who received training in handling sales and returns for the business. Her supervisor referred to both types of activities as

as short as possible.

The cash conversion cycle should be

new business projects and strategies.

The finance function would definitely be involved in a decision regarding

control the finances of the business.

The overall purpose of accounting is to

assets.

A business owner applying for a bank loan would probably ask the accounting department to provide records that show the value of the company's total

$17,970

A business's liabilities total $87,420. Its assets amount to $105,390. What is the value of the owner's equity?

$66,325

A business's revenue is $77,300, its expenses are $54,644, its liabilities equal $37,910, and its owner's equity is $5,759. Use the expanded accounting equation to determine the business's assets.

working capital management.

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

allocate their funds.

Business managers use accounting information to help them to

Variances

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

obtaining funds.

The role of finance in business often involves

timely and understandable.

To be useful to businesses, financial information should be

transparent.

When Alana prepares a report so that all of the financial data is clearly disclosed, she is ensuring that the information is

Cash management

Which of the following is a primary responsibility of a company's financial function:

To identify trends

Which of the following is a way that businesses can use financial information:

To determine if the business is performing above or below average

Which of the following is the most likely reason why a manager would review financial information for her/his industry and compare his/her business's operating results with industry averages: