POB 6.02 – Working Capital Management and Business Finance Study Guide, Key Concepts
and Review Notes
Working capital management - ANS ✔✔A company's current balance of assets and liabilities
falls under the focus of
Money - ANS ✔✔Finance is the business function that involves managing
Reduce risks - ANS ✔✔The goals of the finance function are to ensure profitability and to
Recordkeeping activities - ANS ✔✔Accounting is distinct from finance because its main focus is
on
Investments - ANS ✔✔The administration of assets refers to decisions about
Acquisition of funds - ANS ✔✔Decisions about financing refer to the
In line with organizational priorities - ANS ✔✔The finance function ensures that the company's
financial goals are
It plans and controls spending - ANS ✔✔How does the finance function relate to company
spending?
Accounts payable - ANS ✔✔Money the business owes is known as
Accounts receivable - ANS ✔✔Money owed to the business is known as
and Review Notes
Working capital management - ANS ✔✔A company's current balance of assets and liabilities
falls under the focus of
Money - ANS ✔✔Finance is the business function that involves managing
Reduce risks - ANS ✔✔The goals of the finance function are to ensure profitability and to
Recordkeeping activities - ANS ✔✔Accounting is distinct from finance because its main focus is
on
Investments - ANS ✔✔The administration of assets refers to decisions about
Acquisition of funds - ANS ✔✔Decisions about financing refer to the
In line with organizational priorities - ANS ✔✔The finance function ensures that the company's
financial goals are
It plans and controls spending - ANS ✔✔How does the finance function relate to company
spending?
Accounts payable - ANS ✔✔Money the business owes is known as
Accounts receivable - ANS ✔✔Money owed to the business is known as
