Exam 1: Introduction to Business Accounting and the Role of Professional Skills

____________________ refers to the funds a business needs to operate or expand operations.

A business is said to be ____________________ when it is capable of paying off its debts.

A business' financial statement is meant to convey information about the business to ________ and __________ users in order to help them make decisions about the business.

An ____________________ is an individual who is willing to risk the uncertainty of not knowing if customers will buy what their business provides, in exchange for the reward of a profit, along with the reward of seeing their business succeed.

Which of the following summarises a business' receipts and payments for a specific period of time?

An internal user of accounting information would receive "tailor-made" information from the accounting system.

Describe the planning function of management.

Why is it important to apply generally accepted accounting principles (GAAP) when preparing financial reports?

A sustainable business is one that ensures all processes, products and activities, while maintaining a profit, address current environmental concerns.

Briefly describe the information contained in an Income Statement.

What role do manufacturing cost reports play in management activities?

What are the primary differences between companies/corporations and sole proprietorships?

When calculating the closing balance of owner's equity for a business, which of the following should be added to beginning owner's equity?

Entrepreneurship is a combination of which three factors?

For a sole proprietorship, ____________________ means the owner's personal assets may be at risk if things go wrong in the business.

Cost analysis tells a business owner the selling price of a product or service.

Suppose that you are the manager of a business that manufactures various types of athletic shoes for sale primarily in your own country. Discuss the pros and cons of locating your manufacturing plants abroad versus locating in your own country.

Evaluating activities consist of:

What are the primary similarities and differences between service businesses and merchandising/manufacturing businesses?

A dental surgery is an example of a service business.