DAC1 Exam Chapter 23 Rated A+
4 reasons businesses choose to incorporate - ANSWER-limited liability,
unlimited life,
transferability of shares,
ability to raise investment capital
7 departments within organizations - ANSWER-accounting
finance
HR
sales
marketing
operations/production
management information systems MIS
accounting - ANSWER-provides quantitative information about the finances of the
business including recording, measuring, and describing financial information
analyzes the transactional information of the business so the owners and investors can
make sound economic decisions
asset - ANSWER-anything owned that has value or earning power
balance sheet - ANSWER-gives an accounting picture of property owned by a company
and of claims against the property on a specific date
assets=liabilities+owner's equity
like a snapshot of the position of an individual or business at one point in time.
bookkeeping - ANSWER-actual recording of the business's transactions, without any
analysis of the information
break-even analysis - ANSWER-a way to determine the volume of business required to
make a profit at the current prices charged for the products or services.
break-even point - ANSWER-the point at which revenues equal costs.
capital - ANSWER-represents money wise purpose is to make more money.
cash flow analysis - ANSWER-a means to conduct a periodic check on the company's
financial health.
corporation
(organization, enterprise, business) - ANSWER-is an artificially created legal entity that
exists separate and apart from those individuals who created it and carry on its
operations.
most sophisticated form of business entity.
4 reasons businesses choose to incorporate - ANSWER-limited liability,
unlimited life,
transferability of shares,
ability to raise investment capital
7 departments within organizations - ANSWER-accounting
finance
HR
sales
marketing
operations/production
management information systems MIS
accounting - ANSWER-provides quantitative information about the finances of the
business including recording, measuring, and describing financial information
analyzes the transactional information of the business so the owners and investors can
make sound economic decisions
asset - ANSWER-anything owned that has value or earning power
balance sheet - ANSWER-gives an accounting picture of property owned by a company
and of claims against the property on a specific date
assets=liabilities+owner's equity
like a snapshot of the position of an individual or business at one point in time.
bookkeeping - ANSWER-actual recording of the business's transactions, without any
analysis of the information
break-even analysis - ANSWER-a way to determine the volume of business required to
make a profit at the current prices charged for the products or services.
break-even point - ANSWER-the point at which revenues equal costs.
capital - ANSWER-represents money wise purpose is to make more money.
cash flow analysis - ANSWER-a means to conduct a periodic check on the company's
financial health.
corporation
(organization, enterprise, business) - ANSWER-is an artificially created legal entity that
exists separate and apart from those individuals who created it and carry on its
operations.
most sophisticated form of business entity.
