1|Page | © copyright 2024/2025 | Grade A+
BUSM-20 final exam study guide
Questions and Answers (100% Pass)
An important difference between accounting and other business functions,
such as marketing and management, is that
✓ the recording, classifying summarizing and interpreting of financial
events and transactions to provide management and other interested
parties the information they need to make good decisions
Although accounting has several specific uses, the overall purpose of
accounting can be summarized as
✓ a major purpose of accounting is to help managers make well
informed decisions. another is to report financial information about the
firm to interested stakeholders, such as employees owners, creditors,
suppliers, unions, community activists, investors and the goverment (for
tax purposes)
The accounting profession is divided into 5 key working areas, two of which
are
✓ managerial accounting, financial, auditing, tax accounting, and
government and not for profit accounting
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
The Balance Sheet, the Statement of Cash Flows, and the ______________ are
three key financial statements prepared by accountants
✓ The balance sheet, the statement of cash flows, and the income
statement are
The __________ is an accounting statement that reports the financial condition
of a firm at a specific point in time.
✓ the balance sheet
________ examine the data prepared by ________ and then make
recommendations to top management regarding strategies for improving the
firm
✓ managers examine the date prepared by accountants
Undercapitalization refers to the problem of
✓ the problem of: insufficient funds to start the business
Which of the following activities is most likely to be performed by a financial
manager?
Master01 | October, 2024/2025 | Latest update
BUSM-20 final exam study guide
Questions and Answers (100% Pass)
An important difference between accounting and other business functions,
such as marketing and management, is that
✓ the recording, classifying summarizing and interpreting of financial
events and transactions to provide management and other interested
parties the information they need to make good decisions
Although accounting has several specific uses, the overall purpose of
accounting can be summarized as
✓ a major purpose of accounting is to help managers make well
informed decisions. another is to report financial information about the
firm to interested stakeholders, such as employees owners, creditors,
suppliers, unions, community activists, investors and the goverment (for
tax purposes)
The accounting profession is divided into 5 key working areas, two of which
are
✓ managerial accounting, financial, auditing, tax accounting, and
government and not for profit accounting
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
The Balance Sheet, the Statement of Cash Flows, and the ______________ are
three key financial statements prepared by accountants
✓ The balance sheet, the statement of cash flows, and the income
statement are
The __________ is an accounting statement that reports the financial condition
of a firm at a specific point in time.
✓ the balance sheet
________ examine the data prepared by ________ and then make
recommendations to top management regarding strategies for improving the
firm
✓ managers examine the date prepared by accountants
Undercapitalization refers to the problem of
✓ the problem of: insufficient funds to start the business
Which of the following activities is most likely to be performed by a financial
manager?
Master01 | October, 2024/2025 | Latest update
