FREE BUSINESS AND STUDY GAMES ABOUT 401 KEY

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FREE BUSINESS AND STUDY GAMES ABOUT 401 KEY

TERMS EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -39 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Accounting standards

Answer:

Rules that accountants must follow when preparing financial statements.

Question 2: Cash

Answer:

Currency and coins.

Question 3: Venture Capital

Answer:

Invested money used for new business opportunities .

Question 4: Accounts payable

Answer:

All monies owed by the business to others.

Question 5: Expenditures

Answer:

The monies that a business spends; also called expenses.

Question 6: Capital investment decisions

Answer:

Decisions that determine which projects a business will invest in , how the investment(s) will be financed , and whether to pay dividends to shareholders.

Question 7: Equity funding

Answer:

Using money from investors to finance a project in exchange for shares in the company.

Question 8: Accountant

Answer:

An individual who has had specialized training in accounting procedures.

Question 9: Accrual accounting method

Answer:

A method of accounting that records transactions at the time they occur even if no money changes hands at the time.

Question 10: Cash accounting method

Answer:

An accounting method in which income and expenditures are recorded at the tie the money changes hands.

Question 11: Return on capital

Answer:

A measure of how well a business generates cash flow in relation to the capital it has already invested in itself.

Question 12: Income

Answer:

Money received by a business or individual from outside sources.

Question 13: Assets

Answer:

Anything of value that a business owns.

Question 14: Financial accounting

Answer:

A type of accounting that involves preparing and reporting financial data to external users who are not directly involved in business operations.

Question 15: Cash conversion cycle

Answer:

Ratio that refers to the number pf days between a company paying for raw materials and receiving cash from selling the products made from those raw materials.

Question 16: Capital budgeting

Answer:

A process in which a firm's financial managers determine which projects it should invest in.

Question 17: Finance

Answer:

In business, the function that involves all money and money management matters.

Question 18: Accounting cycle

Answer:

A process of series of steps that businesses complete to maintain their financial records effectively.

Question 19: Dividend

Answer:

A sum of money paid to an investor or stockholder as earning on an investment .

Question 20: Credit

Answer:

The arrangement by which businesses or individuals can purchase now and pay later .

Question 21: Investors

Answer:

Those who invest their funds in a business; may be owners or stockholders.

Question 22: Asset(s)

Answer:

Anything of value that a business or individual owns.

Question 23: Administration of Assets

Answer:

Finance activity involving making decisions about a firm's investments.

Question 24: Accounting

Answer:

The process of keeping and interpreting financial records.

Question 25: Expenses

Answer:

The monies that a business spends ; also called expenditures.

Question 26: Bookkeeping

Answer:

The steps of the accounting cycle that involve recording each business transaction; the process of analyzing financial transactions, journalizing transactions , posting to ledgers , and balancing the books.

Question 27: Income statement

Answer:

A financial summary that shows how much money the business has made or lost; also called the profit-and-loss statement .

Question 28: Accounting system

Answer:

The methods and procedures used in consistently handling the business's financial information.