1- Accounting information is used by ________to help them make
financial decisions.
A. managers
B. potential investors
C. creditors
D. . all of the above
2- Regardless of the type of business or the amount of money
involved
A. all companies use identical accounting systems
B. balance sheets are more important than income statements
C. common procedures are used in handling financial
information
D. no standardized accounting system is employed
3- Business monetary transactions are summarized in:
a. bank books
b. financial statements
c. computers
d. cash registers
4- Public accountants may earn the title of CPA by
a. becoming governmental accountants
b. paying a fee
c. fulfilling rigorous requirements
d. obtaining a Bachelor of arts degree in accounting
5- Private and governmental accountants are paid on a
___________basis.
a. salary
b. monthly
c. fee
d. weekly
status
agencies
monitored
maintain
independently
procedure
fee
hire
rigorous
solely
4. Rather than expand into foreign lines, the dress shop manager
chose to deal with domestic fashion designers. only ______
5. Although the consultant’s were well worth the money. charge for
services was high, his guidance and advice
_
6. The financial condition of a company is reflected in its financial
statements. _
7. When the business began to expand, a second bookkeeper was
brought in to help keep the books____
1
2
3
4
5
Long term financing is used by a company to purchase new
equipment and to construct additional facilities.
In financing business operation, a company relies almost entirely
on short-term financing.
How well a company manage its finances affects the overall
success of the business venture.
A new business only needs capital to meet day-to-day expenses
Long-term and short-term financing may be acquired from outside
sources.
Answer
Word
Definition
property
provide information item by item
equal
indicate by words or symbols
condition
detail
accounting equation
. a series of transactions, changes, or functions
that bring about a particular result
the existing circumstance
of or pertaining to money
monetary
process
. anything owned by a person
assets equal liabilities plus owners equity
express
have the same value as
1. Although Ms. Robinson and her partners had already defined their new product line, they
were still searching for the money needed to purchase equipment and materials. _____
2. In general, a business that is able to manage its finances successfully will continue to exit.
____
3. One of the chief element in financial planning is achieving the correct balance between longterm and short-term capital. ____
4. When an individual or a company borrows money from a bank, this money must be paid back
by a specific date.
____
5. Owners anticipate that the company will use fixed assets for many years. ___
Similarly
Capital
Primary
Short-term
Support
Consideration
Purchase
Start up
Arrangements
Finance
The Cunhas were planning to ………… a small retail business. Before
making the final decision, they looked at the amount of personal …….. they
had to invest. The remaining funds they would have to ………….. through
various ……….. and long-term ……… Another…….. was the type of
equipment they would have to ………. initially. ………..
1- The process of acquiring capital is known as:
A. Accounting
B. Capitalizing
C. Financing
D. Incorporating
2- The unit of ownership in a corporation is a
A. Bond
B. Share
C. Certificate
D. Stock
2- All corporations receive their starting capital by:
A. Selling bonds
B. Purchasing stock
C. Purchasing shares
D. Selling stock
4- The sale of corporate bonds is an example of .......................... financing
A. Debt
B. Bond
C. Equity
D. Corporate
5- A corporation may be forced to sell its assets if it does not:
A. Pay dividends
B. Make the required payments to bondholders
C. sell bonds
D. Share its profits with stockholders
Interest payment
A. Satisfy
Severe
B. Give one right
Obligation
C. Occurring at regular times
Source
D. Extreme
Entitle
E. First
Periodic
F. The contract or promise that compels
one to follow a certain course of action
G. A sum paid for borrowing money
Issue
deadline
Meet
H. Anything or place from which something
is obtained
I. A time limit for finishing something
initial
J. Print for sale or distribution